What's Going On With Zoom Video Stock Today?

Zoom Video Communications Inc ZM shares are trading lower Tuesday after the company reported third-quarter results and issued guidance below analyst estimates.

What Happened: Zoom said third-quarter revenue increased 5% year-over-year to $1.1 billion, which narrowly beat average analyst estimates, according to Benzinga Pro. The company said its strong top-line results were driven by continued momentum in enterprise.

Zoom reported third-quarter earnings of $1.07 per share, which beat average analyst estimates of 84 cents per share.

"Our customers are increasingly looking to Zoom to help them enable flexible work environments and empower authentic connections and collaboration. Proactively addressing these needs with Zoom's expanding platform continues to be our focus in this dynamic environment," said Eric S. Yuan, founder and CEO of Zoom.

Zoom expects fourth-quarter revenue to be between $1.095 billion and $1.105 billion versus average analyst estimates of $1.12 billion. The company expects full-year revenue to be between $4.37 billion and $4.38 billion versus estimates of $4.4 billion. 

Analyst Assessment: Several analysts lowered price targets on the stock following the company's quarterly results. 

• Piper Sandler analyst James Fish maintained Zoom with a Neutral and lowered the price target from $84 to $77.
• Deutsche Bank analyst Matthew Niknam maintained Zoom with a Hold and lowered the price target from $95 to $75.
• Mizuho analyst Siti Panigrahi maintained Zoom with a Buy and lowered the price target from $120 to $100.
• Morgan Stanley analyst Meta Marshall maintained Zoom with an Equal-Weight and lowered the price target from $90 to $85.
• Wells Fargo analyst Michael Turrin maintained Zoom with an Equal-Weight and lowered the price target from $95 to $80.

ZM Price Action: Zoom has a 52-week high of $251.70 and a 52-week low of $70.44.

The stock was down 8.21% at $73.67 at time of publication.

Photo: courtesy of Zoom.