Zoom Video Communications Inc (ZM.O) shares have fallen nearly 90% since their pandemic high in October 2020, as the former investor darling struggles to adjust to a post-COVID world.
On Tuesday, the stock fell nearly 10% after the company cut its annual sales forecast and reported its slowest quarterly growth in history, prompting at least six brokerages to lower their price targets.
The company, which rose to prominence during lockdowns due to the popularity of its video-conferencing tools, is attempting to reinvent itself by focusing on businesses with products such as cloud-calling service Zoom Phone and conference-hosting service Zoom Rooms.
Analysts believe a turnaround is still a few quarters away as growth in its mainstay online unit slows and competition from Microsoft Corp’s (MSFT.O) Teams, Cisco’s (CSCO.O) Webex, and Salesforce’s (CRM.N) Slack intensifies.
Operating expenses increased by 56% in the third quarter as the company spent more on product development and marketing. Its adjusted operating margin fell to 34.6% from 39.1% the previous year.
Some brokerages believe Zoom could benefit from acquisitions, but CEO Eric Yuan stated on a post-earnings call that he continues to see heightened deal scrutiny for new business.
Q: Is Zoom a good stock to buy now?
A: 5 (20%) of 25 analysts recommend ZM as a Strong Buy, 2 (8%) recommend ZM as a Buy, 15 (60%) recommend ZM as a Hold, 1 (4%) recommend ZM as a Sell, and 2 (8%) recommend ZM as a Strong Sell. Here’s how to buy Zoom stock if you’re new to stock investing.
Q: Who owns the most Zoom stock?
A: Zoom (NASDAQ: ZM) has 52.69% institutional ownership, 3.10% Zoom insider ownership, and 44.21% retail ownership. Bin Yuan is the company’s largest individual shareholder, with 4.94 million shares representing 1.66% of the company. Bin Yuan’s Zoom shares are currently worth $407.99 million.
Q: What platform is better than Zoom?
A: Microsoft Teams is a web conferencing and team collaboration platform designed for teams that primarily communicate via video conferencing platforms. Teams are intended to work in tandem with other popular Microsoft Office tools such as PowerPoint, OneDrive, SharePoint, and Outlook.