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Home News Business

Zoom Can’t Keep Up With Competitors As Shares Continue To Fall

Aayat AlibyAayat Ali
November 22, 2022
in Business
Reading Time: 1 min read
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Zoom Can’t Keep Up With Competitors As Shares Continue To Fall

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Despite popular belief, even the most notable video conferencing software company is struggling in the post-pandemic world. 

For Zoom, this came in the form of its shares falling around 90% from its pandemic peak in October of 2020, indicating a need for the platform to upgrade and expand.  

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Although Zoom became the savior for many businesses and families separated in the most uncertain days of the pandemic, other companies were able to quickly follow suit and, in some cases, improve upon the video chat industry.  

The company has made efforts, launching products such as cloud-calling service Zoom Phone and Zoom Rooms, which allows users to host virtual conferences. However, investors say that competition from companies like Microsoft and Cisco are threatening any possible rebound.  

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“Zoom has a fundamental flaw — it has needed to spend heavily to keep hold of market share. Spending to cling onto, rather than grow, market share is never a good place to be and was a sign of trouble ahead,” said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown. 

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Aayat Ali

Aayat Ali

Aayat is an editor for the Daily Digest based in Lexington, Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces.

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