Zoom Forecasts Lower Profit Amid Rising Competition
Zoom expects first-quarter profit below estimates due to competition. Shares fell 3% after the company warned of a cautious spending environment for software.
Zoom Communications, Inc.[Symbol:{ "assets":{ "symbol":"ZM" } }] issued a quarterly profit forecast on Wednesday that fell short of Wall Street expectations. The announcement, which highlights the impact of intensifying competition and a more cautious corporate spending environment, led to a nearly 3% drop in the company's shares during extended trading.
The video conferencing pioneer is facing increasing pressure from major tech rivals, including Microsoft Corporation[Symbol:{ "assets":{ "symbol":"MSFT" } }] and its Teams platform, as well as Alphabet Inc.[Symbol:{ "assets":{ "symbol":"GOOG" } }] through Google Meet. These competitors often bundle their communication tools within broader workplace software suites, providing a cost-effective alternative for enterprise clients compared to standalone services.
