ZOOM IS STRUGGLING TO CONVINCE CONSUMERS TO PAY, AND THE STOCK IS SLIDING:
Zoom Video Communications Inc. is struggling to convince people to pay for its videoconferencing service in the third year of the COVID-19 pandemic, contributing to a trimmed forecast and falling stock price Monday.
Zoom executives reduced their earnings and revenue guidance for the fiscal year Monday afternoon, and Zoom Chief Financial Officer Kelly Steckelberg blamed a stronger U.S. dollar — a problem many global tech companies have called out in recent earnings reports — but also a decline in “the online business,” or the more casual Zoom user.
“Our revenue was impacted by the strengthening of the U.S. dollar, performance of the online business, and to a lesser extent sales weighted to the back end of the quarter,” Steckelberg said in a statement included with the results.
In an interview with MarketWatch and a conference call Monday afternoon, Steckelberg acknowledged that individuals and small businesses have changed their habits. Many aren’t flocking to the service as often or for as long as they did during the peak of the pandemic, when many Americans were working almost exclusively from home and socializing with friends over the service. An increase in one-on-one meetups, vacations and hybrid work schedules have altered the post-pandemic business cycle for Zoom, executives acknowledge, and getting users to pay is harder.
“The big challenge is new customer additions,” she said.
More here: If Zoom Video Breaks to New Lows, Here’s What Could Happen:
Zoom Video stock is off on Aug. 23 after the provider of videoconferencing and other tech services missed sales expectations.
Zoom Video on Tuesday has been trying to rally off the opening lows, but the shares of the provider of videoconferencing and other tech services at last check are down 14%.
The stock is making multimonth lows after the company reported earnings. At today’s low, Zoom Video stock was down about 15%.
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On the downside, today’s low will be key. At last check that was $82.88, and a break of this level that isn’t quickly reclaimed could put the 52-week low in play near $79.
If it breaks below this level and can’t reclaim it, it could usher in more selling pressure and potentially bring us a test of the $60 level, which was a major support level before the stock erupted higher due to the covid-19 pandemic and work-from-home efforts.
Zoom stock closed 16.54 percent down today.