He also thinks there is a growing probability that Zoom will make “dilutive” acquisitions as it pushes to expand its range of offerings. Zukin said in a research note that he remains confident in Zoom’s ability to build a unified communications platform that includes elements beyond videoconferencing, but that he has “less visibility and conviction” regarding near-term top line growth and free cash flow margins. The company is projecting that revenue growth this year will slow to about 11%, down from 55% in the year ended in January 2022, and below the former Wall Street consensus forecast for 15.5% growth. On Monday, Zoom (ticker: ZM) posted January quarter results that edged past Wall Street’s expectations, but provided disappointing forecasts for both the April quarter and the full year ending in January 2023. Zoom is 100% reliant on the smooth functioning of all its digital offerings, and blackouts in even one can seriously disrupt users and perhaps even lead to migration to rival online video conferencing/phone service providers.The stock is down nearly 80% since its October 2020 peak, due to a combination of slowing growth and reduced valuation multiples for technology stocks. Similarly operational, according to that page, was the company's foundational Zoom Meetings service.Īlthough all seems to be back to normal, the investor reaction to the outages is understandable. Zoom hasn't yet commented in more detail about the incident.Īs of late afternoon Friday, the specialty tech company's status page indicated 'all systems operational,' including Zoom Phone for all listed regions. The article also stated that Zoom posted on its status dashboard that its Zoom Phone telephony feature was experiencing degraded operability. Reuters cited statistics compiled by tracking site indicating that nearly 10,000 such incidents occurred that day. So whatĪccording to numerous media reports, Zoom's audio-streaming platform suffered a spate of outages on Thursday. But that's what happens when your service goes dark for thousands of users. Bellwether teleconferencing stock Zoom Video Communications ( ZM 7.41%) was a stinker of a stock on Friday, sagging more than 2% in price against the 1.4% rise of the S&P 500 index.

Why zoom stock is down today