The stock of Zoom loses 17.39 percentage points on the Nasqad, closing among the worst a Wall Street. The value arrives just over $ 200, after starting the day at $ 220. Analysts think the reason lies in the return to the office of many workers around the world, who have less need to focus on the company’s video calls.
Zoom collapses on the stock market, -18% on Wall Street
Since the start of the pandemic last year, the whole world has learned what Zoom software is. Video calls have become an essential tool for remote communication, a reality that many have had to deal with during the pandemic. But already last year, il November 9, 2020, the stock lost 17.3 percentage points in a single day. At the time though it was worth $ 413, more than double the likely close today on Wall Street.
This year, Google and Microsoft pushed their software (Meet and Teams respectively) to schools and businesses around the world, leveraging integration with office tool packages and their respective operating systems. Zoom doesn’t have the same superstructure of the two companies, more stable also on the stock exchange.
But despite this, Zoom’s quarterly revenue as of Oct 31 has increased 35% compared to last year. But they are less than the 54% increase over the previous quarter. And according to forecasts, the next quarter will still be up, but by 19%. So Zoom continues to grow, but at an increasingly slower pace. So BTIG, Deutsche Bank, Baird, Guggenheim, Wells Fargo, Stifel, UBS, Piper Sandler and KeyBanc have downgraded the stock’s rating.
The reason therefore may be the return to the office. Or even the physiological decline in a market that could not continue to grow at the rate seen this year. The fact is that Zoom continues to lose value on the stock market, while continuing to gain on the market.