Zoom Falls After Earnings to Continue Hurting Its Investors
Shares of Zoom Video Communications (ZM:US) turned sharply lower in after-hours Monday after the online communications business reported earnings for its third quarter.
Zoom’s Q3 report confirmed that the company continues to witness slowing growth in a post-Covid era with year-over-year revenue growing less than 5% - the slowest quarterly growth on record for Zoom.
Despite a big profit beat, relative to the average analyst estimates, ZM shares still fell as investors are struggling to understand when the company can see its growth return to double digits.
The company also missed consensus when it came to Q4 guidance, which implies flat quarter-to-quarter growth. In case Zoom reports quarterly revenue below the projected $1.10 billion for this quarter, it would mark the first time in history that its revenue growth turned negative.
With Zoom shares down to the low $70s again, the year-to-date (YTD) performance is down by approximately 56%.
Looking at Capitol Trades data, one could see that Congressman Ro Khanna was continuously accumulating Zoom shares since last year’s fall. Rep. Khanna initially started buying ZM stock while they were trading at around $340 apiece and kept adding more to his portfolio even as the stock price declined.
Mr. Khanna was buying Zoom shares throughout 2022 with prices ranging from the low $90s and going to the high $120s. Congressman Khanna, one of the most active stock market traders in Congress, predominantly trades in Tech stocks.
He is a member of the House committees on Agriculture, Armed Services, and Oversight and Reform.
