TL;DR: Zoom sales are cooling down which means stock value is dropping. The company will still go down in history as maybe the only winner in the pandemic with 2020 growth near 400%.
In the iconic words of the great Homer Simpson, “D’oh!” As Zoom’s sales slow, their stocks drop; is it the end of an era?
The darling of the stock market grew 400% in 2020. Quarantine and remote work made the video conferencing platform worth its weight in gold…or another analogy that works better. Things have slowed down now and the company closed its second fiscal quarter in the red.
Here’s the nitty-gritty:
- Shares of Zoom (ZM) plunged more than 15% Tuesday morning and are now in the red for the year
- Sales are up 54%, which doesn’t seem that bad until you compare it to sales in 2020 that saw a growth of 355%
- Third-quarter sales are estimated to be up 34%
All in all, most companies would be all too happy for the cooled-down level of growth Zoom is experiencing. The company is looking for ways to remain innovative in an increasingly competitive industry.
If you’re like the Chicago Church of Christ, then you might have been using Zoom to meet with your church since March 2020. Well, no one’s telling you to stop just yet!
**However, we humbly suggest more user-friendly cat filters.
“For everything God created is good, and nothing is to be rejected if it is received with thanksgiving.”1 Timothy 4:4-5