Zoom Loses $ 100 Billion!

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 While many rejoice the Covid-19 case is declining, some are saddened.


Zoom Video Communication Inc has lost nearly US $ 100 billion since the Covid-19 outbreak subsided.


The video conferencing company posted a 15% decline to close at its lowest level since June 2020.


Its most recent quarter showed slower growth as people began to socialize face -to -face which also affected shares of Peloton Interactive Inc and Teladoc Health Inc which during the lockdown period recorded encouraging gains.



Included in Tuesday’s losses, Zoom saw a loss of US $ 100 billion down from its market value since peaking in October 2020 with a 64%decline.


Zoom and Peloton have returned most of their profits since the outbreak began as well as experiencing withdrawal symptoms. Teladoc’s situation was even worse where its shares plunged to a February 2020 low at which point many companies benefited from people stuck at home when Covid was about to end.


In addition, high-growth companies can be affected by rising bond yields on the deck of the current devaluation trend of future profits. This caused the Nasdaq 100 index to fall 0.5% on Tuesday adding to a 1.2% decline on Monday.


However, some analysts think Zoom will bounce back with opportunities to grow in enterprise communications and falling valuations. Meanwhile, Zoom’s recent sales have lowered its valuation to about 13 times cheaper forward sales than most of its fast-growing technology partners.

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