Zoom shares slide as lackluster growth worries investors
Updates
** Shares of Zoom Communications ZM.O down 7.8%at $82.08
** Co's forecast for low single-digit annual revenue growthdisappoints investors after a recent rally
** Stiff competition from rival video conferencing services including Microsoft Teams MSFT.O has pressured Zoom
** Zoom raised its expectations for fiscal year 2025 adj profit and revenue on Monday
** The midpoint of co's new annual rev expectation of $4.65 bln to $4.66 bln was in line with analysts' average estimate of $4.66 bln, as per data compiled by LSEG
** Midpoint of its Q4 rev forecast was also just about $1 mln above est.
** At least 9 brokerages raise PT on stock
** Piper Sandler raises PT to $89 from $68, says Zoom is now getting a multiple more inline with value-names given the business stability and AI narrative
** Avg rating of 33 brokerages is a "hold", median PT is $87.56 - LSEG data
** Including session's move, stock up 14.3% YTD
Reporting by Sukriti Gupta in Bengaluru
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