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Zoom Video Tanks 12% After Analysts Lowers Price Target

Shares of Zoom Video Communications, Inc. (ZM) are tanking over 12% on Tuesday morning after several analysts lowered the video conferencing app's price target.

ZM is currently trading at $85.19, down $12.25, or 12.57%, on the Nasdaq. The stock opened its trading at $98.20 after closing Monday's trading at $97.44. The stock has traded between $79.03 and $357.93 in the past 52-week period.

Analysts at Morgan Stanley, Robert W. Baird, Royal Bank of Canada, Benchmark, Deutsche Bank Aktiengesellschaft, Stifel Nicolaus and several other firms have lowered to the price target of Zoom Video after the company reported its second-quarter results on Monday.

On Monday, Zoom reported a drop in second-quarter profit and also lowered its annual 2023 outlook.

Profit dropped to $45.7 million or $0.15 per share from $316.9 million or $1.04 per share last year. Adjusted earnings were $323.5 million or $1.05 per share, lower than $415.1 million or $1.36 per share. Revenues rose to $1.09 billion from $1.02 billion a year ago.

For full year 2023, the company expects revenues between $4.39 billion and $4.40 billion and adjusted earnings between $3.66 and $3.69 per share. This is lower than the earlier forecast of revenues between $4.53 billion to $4.55 billion and earnings between $3.70 to $3.77 per share. Analysts currently expect revenues of $4.54 billion during the year ahead.

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