A company that dominated the scene during Corona loses $ 100 billion in market value

Zoom stock fell 15% on Tuesday to close at its lowest level since June 2020.

This is after Q3 results showed slowing growth, with people returning to actual contact.

The losses have wiped out about $ 100 billion from Zoom’s market value since its peak in October 2020, a decline of 64% per share.

Despite the decline, the stock has still grown nearly 500% since its inception in 2019.

And since Zoom was hit by the ups and downs of the epidemic as it returned to normal, the shares of Peloton, a remote-from-home exercise company, as well as the virtual health company Teladoc, drank the same cup, with shares of questlast that went down to Levels of February 2020.

Furthermore, analysts believe that the difficult days for these companies are still in their infancy, as growth-oriented companies are hurt by high bond yields, as the model of reducing future cash flows is used in valuations, which means a rate higher discount and therefore a lower value for these securities.

However, some analysts expect Zoom to recover, especially after recent pullbacks saw the company trade at 13x its futures sales, a cheaper rate than many of its tech peers. in rapid growth.

Read More About: Business News

Leave a Reply