9.6 C
Pretoria
Thursday, May 19, 2022
More
    ZAR - South African Rand
    EUR
    16.8071
    CAD
    12.5132
    NZD
    10.1311
    USD
    16.1761
    GBP
    19.7487
    AUD
    11.1955
    Pretoria
    scattered clouds
    9.6 ° C
    12 °
    7.4 °
    90 %
    1kmh
    44 %
    Thu
    20 °
    Fri
    22 °
    Sat
    12 °
    Sun
    18 °
    Mon
    12 °
    spot_img

    Sponsored

    Sponsored

    Latest Posts

    Zoom shares crash 17% on growth worries

    Zoom Video Communications shares tumbled nearly 17% on Tuesday after the video-conferencing company signaled 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 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

    ALSO READ  Microsoft warns thousands of cloud customers of exposed databases
    spot_img
    Cape Town
    light rain
    14.5 ° C
    14.9 °
    14 °
    90 %
    4.1kmh
    75 %
    Thu
    16 °
    Fri
    16 °
    Sat
    16 °
    Sun
    17 °
    Mon
    15 °
    Durban
    clear sky
    19.9 ° C
    20 °
    16.5 °
    88 %
    2.5kmh
    1 %
    Thu
    25 °
    Fri
    22 °
    Sat
    18 °
    Sun
    20 °
    Mon
    16 °
    Johannesburg
    broken clouds
    7.7 ° C
    9.3 °
    6.9 °
    87 %
    0kmh
    80 %
    Thu
    17 °
    Fri
    19 °
    Sat
    8 °
    Sun
    14 °
    Mon
    8 °
    spot_imgspot_img

    Latest Posts

    spot_img
    Pretoria
    scattered clouds
    9.6 ° C
    12 °
    7.4 °
    90 %
    1kmh
    44 %
    Thu
    20 °
    Fri
    22 °
    Sat
    12 °
    Sun
    18 °
    Mon
    12 °

    Trending Now

    spot_imgspot_imgspot_img

    Dive in!

    Join our Lifestyle subscribers, and start your fitness journey with us today.

    Take a look at our Privacy Policy for more info.

    Media Platform

    So many ideas are shared daily across our platforms, our audience discover areas of interest and use the platforms in an educational capacity, to inform and inspire people to appreciate different perspectives and better understand the world around them on a range of topics.

    en English
    X