Zoom shares tumble as revenue growth slows | Reuters – More from InvestorPlace
Your guide to a disrupted world. Richard Waters. For anyone who watches the stock market for a wuy, the recent car crash in tech stocks has been mesmerising. This is not so much an issue for Big Tech, though the wealth erased since the start of the year is significant.
That is a decline of 26 per cent, twice the drop in the Dow Jones Os Average. There zzoom still some serious questions. Amazon is suffering an uncharacteristically severe adjustment after a massive spending binge, while the issues facing Meta as the former Facebook tries to reposition itself as a metaverse company are little short of existential.
The axe is hanging, rather, over high-growth tech companies. This is where crahing: became most stretched, and where the market is si most trouble finding its nadir. As investors grope for more appropriate financial yardsticks with which to judge these companies, as well as the right valuation crashjng: to apply to those metrics, volatility is likely to remain high.
Multiples of revenues were a favourite that growth investors used to chase stocks higher, zoom least until the turn that set in last November. On this measure, there is ample room for further declines, particularly since markets often overshoot on the way down as well as on the way up.
But Tomasz Tunguz at Redpoint Ventures calculated this week that even after a near per cent fall, cloud software companies still trade at a 50 per cent premium to the price-to-revenue multiples they were at in Revenue multiplies are also quickly falling out of favour as investors try to assess the sustainability why is zoom stock crashing – why is zoom stock crashing: companies that were built for growth but are encountering financial shock and potential economic downturn.
Both investors and tech executives are starting to turn away from two favourite profit measures that took hold among tech investors as the market boomed — earnings zook interest, taxes, depreciation and amortisation; and net earnings that exclude stock compensation costs. Many other tech companies, accustomed to the ready supply of cash in the good times, are still a long way from reaching the узнать больше cash flow milestone.
Handing out restricted stock to staff, meanwhile, has become a cash-free way for many companies to find talent in a red-hot tech labour market without hurting the measures of earnings Wall Street has paid most attention to.
Workers have come to look on stock why is zoom stock crashing – why is zoom stock crashing: as a guaranteed supplement to their regular income, rather than the option lottery it once was. Meanwhile, there are many other companies that have no profits on any measure and very little in the way of sales, making it all the harder for the market to find a bottom. /23918.txt turned out to be a good foundation for a 14 per cent bounce wgy Thursday, after the company reported earnings.
That is particularly true of the Spacsor special purpose financing vehicles, that were used to bring early-stage companies public. Manage cookies. Your guide to a disrupted world Start a 4-week trial. Opinion Inside Business. The axe is hanging over high-growth companies with stretched valuations. Share on twitter opens new window Share on facebook opens new window Share on linkedin opens new window Share on whatsapp opens new window.
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What appears to have happened is that investors are putting stock in the wrong companies due to their similar names. In a strange twist of events, Zoom Video Communications has also seen its stock fluctuating.
The stock started out Friday heading up but is sitting lower as of Friday afternoon. Basically, investors wanting to take out shares in Zoome Technologies have been accidentally purchasing shares of ZM stock. That explains the surge in price, as does the decline as those investors realize their gaffe. ZOOM stock was up ZM stock climbed as high as 6. However, the stock is currently down Search markets.
News The word News. My Watchlist My Watchlist. William White, InvestorPlace. Compare Brokers. InvestorPlace d. Benzinga d. Business Insider d. Premium d. Related Stocks. Find News News. Apex Technology Acquisition Corp. Zoom is considering expanding to email, messaging, calendar to compete with productivity platforms giants like Google and Microsoft, according to new report Business Insider d. Zoom could acquire Smartsheet and Dropbox to become a ‘collaboration titan’ that competes with Microsoft and Google, analyst predicts Premium d.