Zoom shares slide as lackluster growth worries investors

Zoom Communications

26/11/2024 16:24

(Updates)
    ** Shares of Zoom Communications  ZM.O  down 7.8% at $82.08 
    ** Co's forecast for low single-digit annual revenue growth
disappoints investors after a recent rally
        ** Stiff competition from rival video conferencing
services including Microsoft Teams  MSFT.O  has pressured Zoom
  
    ** Zoom raised its expectations for fiscal year 2025 adj
profit and revenue on Monday
    ** The midpoint of co's new annual rev expectation of $4.65
bln to $4.66 bln was in line with analysts' average estimate of
$4.66 bln, as per data compiled by LSEG
        ** Midpoint of its Q4 rev forecast was also just about
$1 mln above est.
  
    ** At least 9 brokerages raise PT on stock 
    ** Piper Sandler raises PT to $89 from $68, says Zoom is now
getting a multiple more inline with value-names given the
business stability and AI narrative
    ** Avg rating of 33 brokerages is a "hold", median PT is
$87.56 - LSEG data
        ** Including session's move, stock up 14.3% YTD
  

 (Reporting by Sukriti Gupta in Bengaluru)
 ((Sukriti.Gupta@thomsonreuters.com;))