Zoom shares fell on Thursday after an analyst downgraded the stock, arguing that the company’s paid video service won’t be a big source of growth.
“We see limited upside to paid video,” wrote Piper Sandler analyst James Fish. “By our estimate, ~80-90% of Zoom’s revenue comes from video meetings today.”
Zoom (ticker: ZM) fell 4% in premarket trading after dropping more than 6% yesterday. It traded at about $80, down from about $380 in June last year. The company’s conference software became an icon of the new world of work during the shift to remote work during the pandemic.
Zoom has come under pressure this week after advocacy groups said it should abandon efforts to incorporate emotion analysis tools in its software. They are a violation of privacy and human rights, the American Civil Liberties Union said in an open letter Wednesday.
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