Shares Of Zoom See Worst Day in Nine Months 

Share post:

Shares of Zoom Video Communications Inc fell nearly 17% on Tuesday.

The video conferencing company released data showing a faster-than-expected drop in demand, leaving analysts wondering what Zoom plans to do when people go back to work.

With the relaxation of pandemic restrictions, Zoom should now be looking for new growth opportunities. In July, the video conferencing platform bet $14.7 billion on Five9 to boost its contact center business.

Analysts expect it could take a few quarters for Zoom to return to its actual underlying growth rate.

Zoom forecast revenue for the current quarter revenue between $1.015 billion and $1.020 billion on Monday, an increase of 31% compared with multiple-fold growth rates in 2020.

At least six brokerages slashed their price targets for Zoom, according to Refinitiv data, with Piper Sandler slashing its price target by more than $100 to $369.

The company’s shares traded on Tuesday at $289.50, their worst level in more than nine months.

The company’s shares rallied to exponential highs since February last year, reaching a valuation of $175 billion in October. Since then, share prices have eased and Zoom’s current capitalization is now half of its October peak.

For more information, view the original story from Reuters.


Related articles

Amazon cracks down on workers tapping in in for coffee

Amazon is intensifying its crackdown on employees who circumvent its return-to-office requirements. Reports from Business Insider indicate that...

Samsung workers strike claiming harsh working conditions

Giheung, South Korea— Women working on Samsung Electronics' 8-inch semiconductor production line are striking, citing severe working conditions....

AI could displace more than 50% of banking jobs, according to new Citigroup report

In a recent report by Citigroup, the global investment firm has projected that artificial intelligence (AI) could lead...

SoftBank plans to cancel out angry customer voices using AI

SoftBank, the Japanese telecommunications giant, recently announced the development of "emotion-canceling" technology powered by artificial intelligence (AI) that...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways