After the COVID-19 pandemic, the shares of the Zoom video conferencing application shot down about 90 percent of its value, since the peak of the pandemic in October 2020.
On Tuesday 22 November, Zoom also experienced a decline of nearly 10 percent after the company cut its annual sales forecast and posted its third quarter (Q3) growth no later.
This prompted at least six stockbrokers to cut their pricing targets. The investor's former favorite is reportedly struggling to adapt to the world after COVID-19.
Where Zoom has now changed itself by focusing on presenting new products, such as Zoom Phone cloud calling services and conference hosting that offer Zoom Rooms.
Launching USNews, Wednesday, November 23, analysts say any change in direction in business will still result in a few more quarters of profit, as its flagship online unit growth slows down and competition from Microsoft Teams, Cisco Webex and Slack is getting tighter.
"Zoom has a fundamental weakness, (where) Zoom has to spend a lot of money to maintain its market share," said analyst Sophie Lund-Yates.
"Filling money to maintain, instead of growing, the market share is not a good place and is a sign of future problems," he continued.
In addition, the company's operating costs also jumped 56 percent in Q3 as it spent more on product development and marketing.
However, some brokers believe that if Zoom is acquired, it can certainly help revive the company's growth.
Unfortunately, chief executive Eric Yuan stated on a post-income call that he continues to see increased deal surveillance for new businesses.
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