Are You Over Zoom? So Are Investors As Stock Plunges
It’s not just work at home participants that are sick of Zoom, now investors are ditching the stock with the video conference outfit’s stock falling 16% overnight.
The dumping comes as several markets return back to work and Companies consolidate on alternative video conference platforms such as Microsoft’s Teams and Cisco’s WebEx
The shares plummeted after the company warned investors that its growth is slowing down.
The fall came after the company posted Us$1.02 billion in revenue during the second quarter — marking its first billion-dollar quarter and beating analysts’ expectations.
The problem was not the past performance of Zoom but their forecasts for future revenues.
Zoom said that it expected to take in $1.015 billion and $1.02 billion during the quarter ending Sept. 30. That means revenue growth would either stay unchanged or fall during the second and third quarters.
This spooked investors as several Countries coming out of lockdowns are urging employees to return to the office.
“We had expected [a slowdown] towards the end of the year, but it’s just happened a little bit more quickly than we expected,” Chief Financial Officer Kelly Steckelberg told investors in an earnings call.
Analysts said the company would try to jumpstart growth by aggressively spending on expansion and ramping up its platform and Zoom Phone — its cloud-calling product for businesses.
Zoom recently announced the buyout of call-centre software maker Five9 for $14.7 billion in its largest deal, as well as Kites GmbH, a firm that helps in real-time language translation.