TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Management shake-up at TymeBank – including a new CEO

      24 May 2022

      Standard Bank CEO apologises for weekend downtime

      24 May 2022

      South Africa fifth in Africa for blockchain funding

      24 May 2022

      Hein Engelbrecht to lead Mustek on interim basis

      24 May 2022

      Datatec in talks over Analysys Mason unit

      24 May 2022
    • World

      Terra collapse triggers $83-billion DeFi slump

      24 May 2022

      Zuckerberg sued in personal capacity over Cambridge Analytica

      24 May 2022

      Is the end of the bitcoin winter nigh?

      24 May 2022

      Zoom leaps higher on upbeat forecast

      24 May 2022

      Michael Dell becomes kingmaker in Broadcom, VMware deal

      23 May 2022
    • In-depth

      Bernie Fanaroff – the scientist who put African astronomy on the map

      23 May 2022

      Chip giant ASML places big bets on a tiny future

      20 May 2022

      Elon Musk is becoming like Henry Ford – and that’s not a good thing

      17 May 2022

      Stablecoins wend wobbly way into the unknown

      17 May 2022

      The standard model of particle physics may be broken

      11 May 2022
    • Podcasts

      The rewarding and lucrative careers to be had in infosec

      23 May 2022

      Dean Broadley on why product design at Yoco is an evolving art

      18 May 2022

      Everything PC S01E02 – ‘AMD: Ryzen from the dead – part 2’

      17 May 2022

      Everything PC S01E01 – ‘AMD: Ryzen from the dead – part 1’

      10 May 2022

      Llew Claasen on how exchange controls are harming SA tech start-ups

      2 May 2022
    • Opinion

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022

      How AI is being deployed in the fight against cybercriminals

      8 April 2022

      Cash is still king … but not for much longer

      31 March 2022

      Icasa on the role of TV white spaces and dynamic spectrum access

      31 March 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»World»Zoom shares crash 17% on growth worries

    Zoom shares crash 17% on growth worries

    World By Agency Staff1 September 2021
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    Zoom Video Communications shares tumbled nearly 17% on Tuesday after the video-conferencing company signalled a faster-than-expected drop in demand and analysts questioned its future plans as people return to office.

    Zoom and other video-conferencing services such as Cisco’s WebEx, Microsoft’s Teams and Salesforce’s Slack Technologies raked in millions of new users as the pandemic forced people to work, study and communicate with friends and family remotely.

    With easing pandemic curbs, Zoom will need to find new avenues for growth. The company already made a US$14.7-billion bet on Five9 in July to bolster its contact centre business. Analysts said it would take a few quarters for Zoom to return to its true underlying growth rate.

    There are significant questions outstanding regarding how new customer demand and customer churn rates will stabilise in the core business

    “There are significant questions outstanding regarding how new customer demand and customer churn rates will stabilise in the core business following the loosening of Covid-19 restrictions,” analysts at Daiwa Capital wrote in a note.

    Zoom forecast current-quarter revenue between $1.015-billion and $1.02-billion on Monday, indicating a rise of about 31%, compared to multiple-fold growth rates in 2020.

    Cut targets

    At least six brokerages cut their price targets on Zoom, according to Refinitiv data, with Piper Sandler being the most bearish — slashing its price target by over $100 to $369. Shares of the company fell by the most in more than nine months to close at $289.50 on Tuesday.

    The company’s shares rallied to stratospheric highs since February last year, with its valuation touching $175-billion in October. Since then, the shares have eased and Zoom’s current capitalisation is half of the October peak.  — Reported by Aniruddha Ghosh, with additional reporting by Chavi Mehta, (c) 2021 Reuters

    top Zoom
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleIntuit in talks to buy Mailchimp for over $10-billion: report
    Next Article Kennedy Chinganya to replace Mark Harris as Altron Nexus MD

    Related Posts

    Terra collapse triggers $83-billion DeFi slump

    24 May 2022

    Zuckerberg sued in personal capacity over Cambridge Analytica

    24 May 2022

    Is the end of the bitcoin winter nigh?

    24 May 2022
    Add A Comment

    Comments are closed.

    Promoted

    Generalists tend to outperform specialists when the going gets tough

    24 May 2022

    Vodacom champions innovation acceleration in Africa

    23 May 2022

    Kyocera answers top 10 questions on enterprise content management

    23 May 2022
    Opinion

    A proposed solution to crypto’s stablecoin problem

    19 May 2022

    From spectrum to roads, why fixing SA’s problems is an uphill battle

    19 April 2022

    How AI is being deployed in the fight against cybercriminals

    8 April 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.