Zoom shares slide 11%

WASHINGTON:

Shares of Zoom slid more than 11% in pre-market trading on Tuesday, after the video conferencing company signaled a faster-than-expected drop in demand and analysts questioned its future plans as people return to office. Zoom and other video conferencing services such as Cisco, Microsoft’s Teams and Salesforce’s Slack raked in millions of new users as the pandemic forced people to work, study and communicate with friends and family remotely. With easing pandemic curbs, Zoom will need to find new avenues for growth. The company already made a $14.7 billion bet on Five9 in July to bolster its contact centre business. Analysts said it would take a few quarters for Zoom to return to its true underlying growth rate. “There are significant questions outstanding regarding how new customer demand and customer churn rates will stabilise in the core business following the loosening of Covid-19 restrictions,” analysts at Daiwa Capital wrote in a note. 

Published in The Express Tribune, September 1^st, 2021.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.