Zoom became the highly praised hero of the pandemic, connecting workers and families with one another during the initial uncertainty.
In September of 2020, Zoom’s stock soared to $470 per share from the $76 per share it saw pre-pandemic.
However, as society becomes acclimated to remote and hybrid work models, the reliance on Zoom has waned. Now, it looks like the company’s stock is taking a tumble.
During its second quarter earnings report, Zoom’s stock fell by 11% to $86.35 per share.
This is mainly due to companies making the pivot to a combination of remote and in-office work. As a result, Zoom’s business activity has dwindled. In fact, the report predicts that the company’s online business will fall by 7% to 8% in 2023.
Additionally, companies such as Microsoft and Google have introduced their own version of Zoom’s services, tightening the competition within this market.
It’s unlikely for Zoom to hit its darling status seen during the pandemic, but if the company can reinvent and repurpose its core model, it may at least remain a pillar of business operations in the future of work.