Zoom records low shares in post pandemic era

Zoom Video Communications shares have fallen roughly 90 per cent 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 per cent 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 per cent 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 per cent year over year, and Zoom’s guidance for Q4 sales fell short after non-GAAP profits of $1.07 per share fell 4 per cent year over year. Zoom’s profits were only $0.16 per share when calculated in accordance with GAAP principles, a decrease of 86 per cent year over year.

After adjusting for the impact of foreign currency, revenue in constant currency was $1,126.1 million, up 7 per cent year on year.

The sources for this piece include an article in Reuters.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

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