Decrease in Zoom Shares and Wall Streets’ Attention

On November 22, it was noted that stock for Zoom (ZM.O), one of the biggest video conference apps, went down to 35% since the need for the online-meetings tools became more stable compared to last year’s panic, which resulted in 6% fall of its shares on Monday.

At the end of the quarter on October 31, Zoom stated the income to be $1.05 billion when previously stocks raised 54% and escalated 360% in winter.

Unfortunately, shares fell to $227.5, when this year resulted in a 28% loss. In addition, after encountering strong opposition from Microsoft’s (MSFT.O) Teams and a new conference app Webex (Cisco, CSCO.O), Zoom had problems with retaining current customers.

To fight that, the company introduced several updates, that were supposed to gain users’ preferences.  For example, the Events platform, which allows having big conferences with a lot of people, Zoom Phone and Zoom Rooms.

Analysts claim that these new services are 5% penetrated, which opens a lot of ways for growing, judging from present potential. Zoom could use this opportunity to find a solution to this unpleasant decrease.

It still might be hard for Zoom to keep a stable income after an unsuccessful try to buy Five9 Inc (FIVN.O), a firm that works with call center software. Despite that, Zoom shares appeared profitable with the cost of $1.11 per one, when Wall Street has predicted them to be about $1.09 per share.

Current-quarter income turned out to be higher than expected and helped the full-year earnings to grow to around $4.08 billion, in comparison to $4.01 billion previously.

Zoom has encountered some downfalls, but overall the company hopes to increase the profits by the end of the year. What do you think about this occurrence? Do you monitor the current stock market? Tell us your opinion in the comments below.