Zoom stock is now 90 cheaper than at its peak
Software

Zoom stock is now 90% cheaper than at its peak during the pandemic

share video conferencing service Zoom plunged nearly 10% on Tuesday after reporting its lowest quarterly revenue growth and lowering its full-year revenue guidance. In that regard, at least six brokerage firms have reduced listings for Zoom securities, which have seen their peak fall an impressive 90 percent over the year since restrictions imposed by the pandemic were lifted.

    REUTERS/Dado Ruvic

REUTERS/Dado Ruvic

In an attempt to rectify the situation, the company is looking for new growth points in the post-pandemic era, targeting the enterprise segment with products like cloud calling service Zoom Phone and conferencing system Zoom Rooms. Also this month, Zoom launched its own mail service and calendar, which will better compete with Google and Microsoft.

Analysts say Zoom’s deal is still a long way off as revenue growth for its core online division slows and competition from Microsoft Corp Teams, Cisco Webex, and Salesforce Slack increases.

“Zoom has a fundamental flaw – it has had to invest heavily to maintain its market share. Spending to maintain, not gain, market share has never been a good thing, a sign of trouble ahead.” said Hargreaves Lansdown analyst Sophie Lund-Yates.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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