Zoom Communications slips on bleak rev outlook as demand slows

Zoom Communications

25/02/2025 09:38

** Zoom Communications  ZM.O  slips 3.32% to $78.41
premarket
    ** Video conferencing platform forecasts FY and Q1 rev below
Wall Street estimates as it navigates an environment where
employers are gradually moving away from hybrid work models
    ** Following Trump's return-to-office order, companies like
JPMorgan Chase  JPM.N , Amazon  AMZN.O  and AT&T  T.N  have
mandated a five-day office week, reducing demand for Zoom calls
    ** J.P.Morgan sees co as cautiously optimistic; notes modest
rev growth, strong free cash flow
    ** Says it is encouraged by co's innovation, especially in
AI, but mixed macro environment remains a concern
    ** Stock rated "hold" on avg; median PT is $90.70 - LSEG
    ** ZM down 0.74% so far this year, as of Monday's close

 (Reporting by Rashika Singh in Bengaluru)
 ((rashika.singh@thomsonreuters.com))