Zoom share
ZOOM VIDEO
-16.54%
closure:0
opening:84.28
High:87.59
low:81.14
cycle:—
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falling 17% today, this after financial reports published last night that disappointed investors – the video calling platform reported revenues of $1.1 billion compared to analysts’ expectations for revenues of $1.12 billion. The company’s earnings reached $1.05 per share, while analysts expected a profit of 93 cents per share.
And if that’s not disappointing enough – the company lowered its forecasts for 2022, the company expects annual earnings per share between $3.66 and $3.69, lower than the company’s previous forecast which expected annual earnings per share of $3.73. Annual revenues are now expected to stand at $4.4 billion, when Zoom at the beginning of the year expected annual revenues of $4.54 billion – this against the background of the management mainly blaming macroeconomic conditions.
Of course, the army of analysts also joined in lowering their target prices and ratings for Zoom – Citi Bank downgraded the stock to “sell” and said that Zoom’s forecast was worse than they expected. “The second quarter was worse than we thought and our concerns about the report caused our downgrade.”
Analysts from BTIG also downgraded Zoom’s stock, citing the company’s weak forecasts for the coming year. – “The retreat in profitability in 2022 and in free cash flow is worrisome, this is in addition to growth in the top line which slowed down more, we lower the rating of Zoom shares to neutral”.
The company was “from the stars of the Corona” and jumped by 735% to a dream market value of 161 billion dollars, this against the background of the transition of businesses and companies to work from home, landed in the last year as a reality. Since that peak in Corona, a thing or two has happened: the Corona has subsided, people are returning to work from the office as well, the use of Zoom is decreasing, and Zoom itself managed to issue financial reports in a chain that disappointed investors and brought down the stock.
The stock collapsed from the peak, by 83%, to a market value of 30 billion dollars – all the way back to the price levels it was at before the corona virus.
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