Zoom Video Communications shares have fallen roughly 90% since their pandemic peak in October 2020, and things are starting to look a little different as the year comes to a close.
The stock is falling as a result of a surge in the pandemic, which has resulted in remote jobs, computer usage, and many other tech-related booms. But, as the world enters its third COVID winter, many of the companies whose stock prices skyrocketed during the pandemic are struggling to adjust to a post-COVID world.
Zoom’s stock fell nearly 10% on Tuesday after the company reduced its annual sales forecast and reported its slowest quarterly growth in history, prompting at least six brokerages to lower their price targets. Despite reporting a sizable earnings beat in its fiscal Q3 earnings report, its shares were down 7.3% as of 10:55 a.m. EST on Tuesday. Analysts predicted Zoom would earn $0.84 per share on $1.1 billion in sales.
Sales increased only 5% year over year, and Zoom’s guidance for Q4 sales fell short after non-GAAP profits of $1.07 per share fell 4% year over year. Zoom’s profits were only $0.16 per share when calculated in accordance with GAAP principles, a decrease of 86% year over year.
After adjusting for the impact of foreign currency, revenue in constant currency was $1,126.1 million, up 7% year on year.
The sources for this piece include an article in Reuters.