Zoom’s share price continued to tumble a further nine per cent today, after the pandemic darling slashed its annual revenue forecast.
The drop adds to its near 60 per cent fall in the year to date, with a 90 per cent plunge since October 2020.
It comes as the tech firm struggles to adapt in a post-pandemic world, where the wider macroeconomic pressures of slowing growth and rising inflation continue to chip away at the video conferencing platform.
The company downgraded its fourth quarter guidance for revenue and profits, citing the difficult economic landscape.
To make matters worse, Zoom recorded its slowest quarterly growth in the third quarter, prompting at least six brokerages to cut their price targets for the stock.
Although the firm was a stand-out winner of the lockdowns, benefitting from remote working boost, investors have struggled to see where the growth for the business could come from moving forward.
Hargreaves Lansdown equity analyst Sophie Lund-Yates said the firm’s “fundamental flaw” was that it has spent too heavily to keep hold of market share, without focusing enough on growth.
“The strength of the US dollar has negatively impacted the business this year, weighing on its international earnings when translated back into dollars, a theme we have seen come up for many US businesses with an international focus this year,” said head of investment at interactive investor Victoria Scholar.