Zoom’s projected slowing revenue expansion in the current period highlights investors’ concerns that 2021 won’t be as favorable for the software maker as this year, when the company gained customers forced to work and go to school remotely. Zoom’s stock has jumped sevenfold thus far in 2020, heightening questions about whether the company is overvalued. Wall Street has fawned over the company for its accelerating sales growth, but analysts have raised questions about how long it might last.
In the fiscal third quarter, Zoom said sales increased 367% to $777.2 million from a year earlier. Profit, excluding some items, was 99 cents a share. Analysts projected revenue of $693.4 million and adjusted profit of 75 cents.
Zoom’s stock has become a barometer of the pandemic economy, rising when Covid-19 lockdowns emerge and falling on good news about vaccines. Chief Executive Officer Eric Yuan has tried to diversify Zoom’s capabilities for