Shares of Zoom Video Communications Inc fell nearly 17% on Tuesday.<\/p>\n\n\n\n
The video conferencing company released data showing a faster-than-expected drop in demand, leaving analysts wondering what Zoom plans to do when people go back to work.<\/p>\n\n\n\n
With the relaxation of pandemic restrictions, Zoom should now be looking for new growth opportunities. In July, the video conferencing platform bet $14.7 billion on Five9 to boost its contact center business.<\/p>\n\n\n\n
Analysts expect it could take a few quarters for Zoom to return to its actual underlying growth rate.<\/p>\n\n\n\n
Zoom forecast revenue for the current quarter revenue between $1.015 billion and $1.020 billion on Monday, an increase of 31% compared with multiple-fold growth rates in 2020.<\/p>\n\n\n\n
At least six brokerages slashed their price targets for Zoom, according to Refinitiv data, with Piper Sandler slashing its price target by more than $100 to $369.<\/p>\n\n\n\n
The company’s shares traded on Tuesday at $289.50, their worst level in more than nine months.<\/p>\n\n\n\n
The company’s shares rallied to exponential highs since February last year, reaching a valuation of $175 billion in October. Since then, share prices have eased and Zoom’s current capitalization is now half of its October peak.<\/p>\n\n\n