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Shares of Zoom have underperformed the broader market over the past year. The stock outperformed through the first three months of the year. But. The Zoom Video Communications Selloff Is OverextendedShares of Zoom Video Communications (NASDAQ:ZM) have done little more than move lower since hitting the.
 
 

 

Why zoom stock drop today

 
Shares of Zoom have underperformed the broader market over the past year. The stock outperformed through the first three months of the year. But. The Zoom Video Communications Selloff Is OverextendedShares of Zoom Video Communications (NASDAQ:ZM) have done little more than move lower since hitting the.

 
 

Why zoom stock drop today.Why Zoom Stock Is Down By 17% Today

 
 

Revenue growth was driven by the company’s acquisition of new customers as well as the expansion of services across its existing customers.

In Q3 FY , Zoom’s earnings and revenue beat consensus estimates. Adjusted EPS increased Revenue expanded The company said that revenue growth was driven by the acquisition of new customers and the expansion of services across its existing customers.

Analysts expect Zoom’s financial performance to deteriorate dramatically in Q1 FY They forecast the company’s adjusted EPS to fall Revenue is expected to grow Annual revenue is expected to rise The size of this customer group provides a measure of two key capabilities: Zoom’s ability to scale its offerings to its users’ needs, and the company’s ability to attract larger organizations to its platform. Large customers are likely to be a more stable source of revenue compared to individuals or smaller organizations who may switch more frequently to other video conferencing services.

Securing contracts with large enterprises will be especially important as the global economy continues to emerge from the worst effects of the pandemic and as many people begin returning to their company offices to work. It will also be important to secure those big-revenue-generating customers as competition with other video-communication platforms heats up.

By the end of FY , the company had such customers. Zoom now plans to launch its own solution in the space — Zoom Video Engagement Center — in early A spokesperson for the company declined to comment on the new service. Keith Snyder, an analyst at independent investment research firm CFRA, said this is an extremely attractive market for Zoom, as it synergizes well with the company’s existing range of products, but entry may not be a cakewalk.

Another area that Zoom is now exploring is advertising. Earlier in November, the company announced that it would roll out a pilot program to show ads to users on its free tier of service. Snyder noted that the free service made Zoom the poster child of the pandemic but “absolutely crushed” the company’s margins, as it had to invest very heavily in third-party infrastructure to host the service.

Joe McCormack, an analyst at research firm Third Bridge, said the free-to-use tier is predominantly used by consumers and small businesses who cannot afford the product’s monthly premium fee. Font Size Abc Small. Abc Medium. Abc Large. Discover the stories of your interest. Blockchain 5 Stories. Cyber-safety 7 Stories. Fintech 9 Stories. If you also prefer someone to do all the hard work for you, I invite you to try out our service.

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