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· Posted on
February 21, 2024

Zoom shares tank on slowing growth

Grab the Nurofen. It looks like Zoom has a case of the COVID hangover thanks to demand pulled-forward.

What's the key learning?

  • Zoom was the MVP of 2020, but as the world opened up, the platform became less popular
  • Now, the company's recorded its slowest growth since at least 2018 and shares have plummeted from all-time highs
  • Pulled forward demand is when a business or product sees demand increase unexpectedly
  • It's likely that the company would experience that demand at a later date, and at a more stable pace...but that demand was 'pulled forward' due to a particular event.

Background: Video conferencing platform Zoom was the MVP of 2020, thanks to us all being forced to WFH. 

What happened: In March of this year, Zoom announced revenues had grown 326% year-on-year to US$2.6 billion. But as the vaccine rolled out...and the world opened up...Zoom fell on its head.

What else: The company's recorded its slowest growth since at least 2018. And, as a result, its shares tanked around 15%. It looks like Zoom has suffered from demand pulled forward...and now it's copped the hangover.

So what's the key learning?

💡Pulled forward demand is when a business or product sees demand increase unexpectedly.

💡It's likely that the company would experience that demand at a later date, and at a more stable pace...but that demand was 'pulled forward' due to a particular event...i.e. a GLOBAL PANDEMIC.

💡Tech companies experienced the pulled-forward demand effect the most. We had Peloton shares rise and tank...Netflix, Pinterest...But we also had Coles and Woolies cop it, too. And now Zoom.

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