'Zoom's growth early last year was overhyped, and now, all the talk about its growth slowing is also overhyped,' Castanon said. Zoom has been both a beneficiary and a victim of hype ever since it first exploded onto the scene at the dawn of the pandemic in 2020, said Raul Castanon, a senior research analyst covering workforce collaboration and communication platforms at 451 Research. Other analysts note, however, that while not matching its meteoric rise during the pandemic, Zoom is not losing any ground and, in fact, continues to grow. 'For now, investors will need some patience as we do not see any upcoming catalysts that would change the sentiment on the stock,' Evercore ISI analyst Peter Levine wrote in a note, maintaining an 'in line' rating on the stock. Looking across estimates, analysts expect Zoom's year-over-year revenue growth rates to decelerate to 15.4% and 14.5% for the quarters ending January 2022 and April 2022, respectively. 'While we're positive on Zoom's strategic initiatives and investments in key growth areas, we find it tougher to like a stock with more sharply decelerating growth and incremental pressure on profitability,' Niknam said. The company 'zoomed to scale last year, but post-pandemic growth is a different story,' Deutsche Bank's Matthew Niknam said in a research note, maintaining a 'hold' rating on the company. 31, revenue growth slowed further to 35.2%, compared to 366.5% in the prior-year period.Īnalysts said this trend is likely to continue, putting pressure on Zoom to find new revenue streams and growth opportunities. Those growth rates eventually slid as the company faced tougher year-ago comparisons, dropping into the double digits in the July quarter. At the peak of its meteoric rise, Zoom posted three consecutive quarters with revenue growth that topped 350% year over year. The COVID-19 pandemic turbocharged the demand for videoconferencing tools and collaboration applications in 2020, allowing Zoom to swoop in and transform itself from a relatively niche provider of business software to a household name.

continued its streak of delivering better-than-expected earnings, but the company's stock plunged amid concerns around diminishing revenue growth.

Zoom stock projections