Zoom Video Communications Inc
The company, once a pandemic favorite, saw its shares surge nearly 400% in 2020 as it benefited from lockdowns.
However, its growth significantly slowed with the return to office work and increased competition from Microsoft Corp's
Other pandemic-era high performers like Peloton Interactive Inc
DocuSign Inc
Being part of the Nasdaq 100 typically enhances a company's visibility and trading liquidity, but Zoom and six other companies are exiting the index during its annual update.
Wall Street analysts have become more cautious about Zoom, with a majority now holding a "hold" rating on the stock.
Revenue growth will likely remain modest in the coming years. As the cultural relevance of Zoom diminishes, the company is diversifying its offerings, including contact center software and persistent chat features, alongside its primary video conferencing service.
Zoom Phone has reached 7 million paid users, but these new services have yet to boost revenue growth significantly.
Zoom is exploring acquisitions for growth, including revisiting a potential acquisition of Five9 Inc
In contrast to Zoom's downturn, other stay-at-home stocks like Roku Inc
Price Action: ZM shares traded lower by 0.08% at $71.51 on the last check Monday.