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Zoom Stock Price Continues Freefall as Analysts Slice Price Targets

Updated: 23 Nov 2021

Born out of pandemic necessity, Zoom has has a tumultuous few years of trading. The stock skyrocketed as working-from-home technology dominated the workplace, yet as we start to rebuild the puzzle, investors are left pondering the future of this lockdown favorite. Following the company’s Q3 results, analysts have slashed Zoom price targets across the board – sparking a 15% sell-off in the opening hours of Tuesday trading, with Zoom stock showing a 35% year-to-date loss. 

Zoom saw exponential growth in its first fiscal year, yet the return to face-to-face normality was never going to bode well for the video chat giant. 

Investors were vigilant previous to the company’s Q3 earnings, with sellers actively pushing price down previous to the announcement. Announcing revenue growth of 35% from the Q320, slowing from 54% growth the previous year, Zoom’s growth is slowing – and analysts took note. The company's Q221 earnings also fell short.

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BTIG lowered targets from $460 to $400 and Deutsche Bank Research lowered its 12-month target to $280 from $350 – significant cuts in both regards. Wells Fargo, Baird, and Piper Sandler were amongst the others to also cut targets.

The future for Zoom rests on shaky ground. Whilst the company is still showing growth, the rate is somewhat worrying. Zoom is simply another stock that heralds the age of digital transformation, yet it needs to find a way to remain as critical as it once was. ZOOM is showing a daily loss of 16.5% – trading around $203.

Should you invest in Zoom shares?

Tech stocks offer some of the best growth potential, but time and time again, traders and investors ask us “what are the best tech stocks to buy?” You've probably seen shares of companies such as Amazon and Netflix achieve monumental rises in the past few years, but there are still several tech stocks with room for significant gains. Here is our analysts view on the best tech stocks to buy right now

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