1 Mar 2022
Zoom Plummets amid Fading Pandemic-Induced Surge
The Index Today
Stocks of Zoom Video Communications Inc. fell 4.6% during Tuesday’s premarket session following bearish outlooks.
Zoom emerged as a major necessity when the COVID-19 pandemic first hit, forcing people to shift online to continue their work and studies from a remote environment. However, the gradual return to the world of in-person work and study has seen a drop in the usage of video communication services such as Zoom.
Moreover, the company is also facing competition from rivals such as Microsoft Teams and Google Meet over additional features aimed at promoting seamlessness and ease of use.
While Zoom surpassed expectations for the fourth quarter, its current quarter performance failed to meet the goal of $1.07 billion in sales. As per Bloomberg, the company’s annual earnings prediction of $4.55 billion is also lower than Wall Street’s projection of $4.75 billion.
Zoom has announced to repurchase its shares worth up to $1 billion in value, in a program that will continue till February, 2024.