The stock’s latest drop of nearly 10% comes after the company cut its full-year sales forecast and posted its slowest quarterly growth.
Standing out with the popularity of video conferencing tools during quarantine and coronavirus restrictions, the company is trying to reinvent itself with products such as Zoom Phone cloud calling service and Zoom Rooms conference hosting.
“Zoom has a fundamental flaw – it has to spend a lot of money to maintain market share. Spending it to retain rather than expand market share is never a good thing, and that’s a sign of problems to come,” said equity analyst Hargreaves. Lansdown Sophie Lund-Yates.
Source: Ferra
