Zoom shares fell nearly 90 percent

Shares of American videoconferencing service Zoom have fallen by almost 90 percent from the pandemic peak in November 2020, Reuters writes.

During trading on Tuesday, November 22, the company’s share price fell by 10 percent amid news of record slow quarterly sales growth. However, then the fall was corrected and amounted to 8.5 percent at the time of writing. If at the peaks in 2020 the price of Zoom shares reached $478, then today their value is $73.4.

During the lockdown periods, the name Zoom has become a household name due to the popularity of the video communication service for people to communicate. However, after the pandemic ends, the company has to look for new business growth opportunities and focus on new products such as Zoom Phone cloud calling service and Zoom Rooms meeting hosting.

In the third quarter, the company’s operating expenses increased by 56 percent, while the operating margin (reflecting the ratio of operating income to sales and expressed as a percentage) decreased from 39.1 percent to 34.6 percent.

“Zoom has a fundamental flaw – the company has to invest heavily in maintaining market share. Spending to hold on rather than increase share has never been a good signal and pointed to trouble ahead,” said analyst Sophie Lund-Yates.


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