Skip to content

Zoom (ZM) nosedives as Citi reduces price target on the stock

Zoom (ZM) nosedives as Citi reduces price target on the stock
Dino Kurbegovic

Zoom Video Communications (NASDAQ: ZM) fell during the market open on May 16 as Citi (NYSE: C) reduced its price target for the company to $118. 

Competition with Microsoft’s (NASDAQ: MSFT) Teams was cited as a competitive headwind with potentially ‘modest upside’ seen for ZM going forward as noted by analyst Tyler Radke.

Shares of Zoom are currently down 4.08% during the early part of the trading session. 

Sour expectations

On May 12, Piper Sandler’s analyst James Fish had also downgraded Zoom shares, citing that the company may have ‘limited upside’ adding that they don’t see gains for paid video and Zoom phone services.    

In comparison with Teams, which is pushed through Office 365 services, ZM seems to lack the potential for upselling, conceivably leading to reduced earning possibility in the future. Analysts expect the company to have $1.07 billion in sales and to earn 88 cents per share. 

ZM chart and analysis

Shares of the company have been in an almost constant decline since August of 2021, creating a downward momentum. Whatsmore, shares are bouncing below all daily Simple Moving Averages on steady volume throughout May.      

 ZM 20-50-200 SMA lines chart. Source. data. See more stocks here.

On Wall Street, analysts give the stock a moderate buy rating predicting that for the next 12 months, the average price could reach $153.59 a potential 68.89% upside from the current trading price of $90.94.

ZM analysts’ price target. Source: TipRanks

Zoom burst onto the scene during the pandemic lockdowns when shares of the company reached a head-spinning $559. Currently, the price is well below those numbers and since no dividend is offered investors can rely solely on price appreciation. 

Competition in the field of online video communication has intensified as more companies realized that remote work will probably stay with us for longer. However, the monetization aspect of the entire process will probably remain a challenge for companies not offering additional accompanying services like Microsoft is doing. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.