Zoom falls after weak third-quarter profit forecast
ZM•Shares fall in premarket trading
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Shares of Zoom Communications ZM.O fell 5.43% to $95.44 in premarket trading.
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The company forecast third-quarter profit below Wall Street expectations on Tuesday, indicating competition remains intense despite its efforts to boost services with AI features.
Forecast trails expectations despite quarterly beat
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Zoom forecast third-quarter adjusted profit of $1.46-$1.48 per share, below analysts' average estimate of $1.50 per share.
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The weak outlook overshadows second-quarter beats on revenue and profit, and comes as Zoom faces rivals like Microsoft's MSFT.O Teams and Alphabet's GOOGL.O Google Meet.
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Seventeen of 31 brokerages rate the stock "buy" or higher, 13 "hold" and one "sell" or lower; their median price target is $120, according to LSEG-compiled data.
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As of the last close, the stock was up about 17% year to date.
