- Why zoom stock is falling drivers#
- Why zoom stock is falling full#
- Why zoom stock is falling software#
In its latest quarterly results, Zoom posted a 35% year-on-year increase in total revenue to $1.05bn. “I’m certainly more positive on the stock down here (at the current price level) than I was over the past year.” “To me, (Zoom) is a reasonable bet,” Ryan Koontz, managing director of Needham & Company, told on 24 November.
Meanwhile, the Ark Next Generation Internet ETF acquired 106,537 Zoom shares. It was reported that renowned stock picker Catherine Wood’s Ark Innovation ETF bought 538,573 of Zoom shares on 23 November amid an intraday price drop of 14.7%. However, Zoom bulls view the recent downturn as a buying opportunity. Zoom stock fell as much as 7% following the news.
Why zoom stock is falling software#
On 2 December, software giant Microsoft introduced a new low-cost tier of its Teams communication service for small businesses. Zoom investors also face the risk from increasing competition. Eventually, the multi-billion-dollar merger was mutually terminated by Five9 and Zoom. In a letter dated 27 August, it asked the Committee for the Assessment of Foreign Participation to assess whether the deal posed a risk to “national security or law enforcement interests of the United States”. The US Department of Justice (USDOJ) also weighed in on the Zoom-Five9 deal.
"The all-stock deal exposes Five9 shareholders to a more volatile stock whose growth prospects have become less compelling as society inches towards a post-pandemic environment,” ISS said according to a Reuters report. On 30 September, proxy advisor company Institutional Shareholder Services (ISS) recommended shareholders of cloud contact centre operator, Five9, reject an $14.7bn all-stock takeover by Zoom on growth concerns.
Why zoom stock is falling full#
Similarly, Zoom stock fell 9% on 2 March after its earnings for its full year were announced. On 23 November, Zoom saw its second worst day of the year as stock prices dropped 14.7% after its third quarter results. On 31 August, Zoom stock fell 16.7% a day after the release of its second quarter results. In 2021, Zoom’s biggest intraday falls followed earnings results. Investors are worried about Zoom’s ability to grow as tailwinds fanned by the pandemic begin to wane. The stock has fallen by over 68% from its record high of $588.84, hit on 19 October 2020. Zoom stock closed at an 18-month low of $183.92 on 3 December. Its current market cap stands at $54.80bn, as of 6 December. Its market cap reached $16bn after one day of trading. The startup gained unicorn status in 2017, although it didn’t yield any profit until 2019.īased in San Jose, California, the company went public in April 2019. The video conference platform attracted one million users by 2013. Zoom Video Communications was founded in 2011 by Eric Yuan, who remains its chairman and chief executive. Will Zoom stock overcome this recent downturn? Let’s read more about Zoom share predictions. Lockdowns and the need to work from home helped stock in the video conferencing service surge by over 400% in 2020.Īs economies opened up in 2021, Zoom stock fell out of investor favour, losing 48% of its value year-to-date, as of 6 December. Zoom has been used extensively during the Covid-19 pandemic.
Why zoom stock is falling drivers#
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