HomeTechnologyCiti Cuts Zoom Stock, Unimpressed With Recent Results

Citi Cuts Zoom Stock, Unimpressed With Recent Results

It looks as though Citi isn’t happy with what they’re seeing from Zoom’s recent financial statements.

Over the last couple years, Zoom emerged as a major player in the social video streaming industry. With the COVID-19 pandemic causing companies to work remotely, Zoom’s product was used exponentially more. It became a staple of work culture, and company growth was through the charts.

However, it seems as though things have changed slightly as of late—at least according to Citi.

Citi research analyst Tyler Radke had this to say about Zoom’s perceived decline: “Zoom’s post-COVID growth trajectory has always been more challenging, given pull-forward dynamics, but we see new hurdles to sustaining growth including rising competition (Microsoft/Teams), macro-related weakness hitting small businesses and less critical spending categories and margin risk.”

As Radke notes, things aren’t the same for Zoom prospects now that many companies have either gone back to working at the office fully or implemented a hybrid model.

As a result, Radke cut his rating for Zoom’s stock from Neutral to Sell, calling the stock a “high risk”.

To make matters worse for the video streaming company, its shares dropped by more than 3% in pre-market trading. While this isn’t the end of the world, it’s still something to look out for if you have money invested in the company.

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