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Why did zoom stock drop so much – none:. Zoom Stock Extends Fall Amid Fears Growth Could Be Worse Than Advertised

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Those growth rates eventually slid as the company faced tougher year-ago comparisons, dropping into the double digits in the July quarter. For the period ended Oct. Analysts said this trend is likely to continue, putting pressure on Zoom to find new revenue streams and growth opportunities.

The company “zoomed to scale last year, but post-pandemic growth is a different story,” Deutsche Bank’s Matthew Niknam said in a research note, maintaining a “hold” rating on the company. Looking across estimates, analysts expect Zoom’s year-over-year revenue growth rates to decelerate to Other analysts note, however, that while not matching its meteoric rise during the pandemic, Zoom is not losing any ground and, in fact, continues to grow.

Zoom has been both a beneficiary and a victim of hype ever since it first exploded onto the scene at the dawn of the pandemic in , said Raul Castanon, a senior research analyst covering workforce collaboration and communication platforms at Research. After Zoom reported earnings after market close Nov. Castanon thinks that the momentum Zoom experienced during the pandemic lit a fire under its larger, deeper-pocketed competitors — including Microsoft Corp.

The market is now crowded with very well-established alternatives, and Zoom is feeling the impact. Zoom reported about , customers with more than 10 employees at the end of the quarter ended Oct. Zoom Video Communications posted better-than-expected financial results for its fiscal fourth quarter, but the stock is falling in late trading Monday after the company forecast weaker-than-expected results for both the fiscal first quarter and the current year.

For the quarter ended Jan. Subscribe or Sign In to continue reading Close Zoom Stock Falls as Revenue Growth Continues to Slow Zoom Video Communications posted better-than-expected financial results for its fiscal fourth quarter, but the stock is falling in late trading Monday after the company forecast weaker-than-expected results for both the fiscal first quarter and the current year. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law.

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Why did zoom stock drop so much – none: –

 
Zoom’s latest quarterly results were better than expected, but revenue growth continues to slow. And its new outlook was worse than. Revenue was at $ billion in the quarter ended Oct. 31, Zoom said, after rising 54% in the previous quarter and surging % a year earlier. The stock is down nearly 80% since its October peak, due to a combination of slowing growth and reduced valuation multiples for technology.

 
 

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