Zoom Video Communications Inc (NASDAQ:ZM) shares are down more than 40% since the start of the year. What’s going on?
Zoom Video stock surged during the 2020 pandemic amid lockdown measures. The stock trended lower for most of 2021 and has continued to slide during 2022 as COVID-19 cases diminish.
In February, Zoom Video announced financial results showing slowing growth year-over-year following the pandemic boom.
Zoom shares are also being pressured by rising rates. The Federal Reserve is in the midst of what is expected to be its most aggressive tightening cycle in more than 40 years as the central bank attempts to tame rising inflation. Higher rates decrease the present value of future cash flows, which can negatively impact the valuations of growth stocks.
Zoom provides a communications platform that connects people through video, voice, chat and content sharing.
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ZM Price Action: Zoom Video has traded between $404.34 and $79.03 over a 52-week period.
The stock was down 9.56% at $108.32 at press time, according to data from Benzinga Pro.
Photo: courtesy of Zoom Video.
