This scenario has weakened over the last few months due to a context of shortages in the supply chain and higher inflation due to the impact of Russia’s war in Ukraine.. Two factors that have joined another, such as the more restrictive monetary policy that has caused interest rate hikes by the Fed, which will continue in the next meetings, and which are hurting “tech” companies in the bag.
Snap’s signal for the market has not been positive and drags other technology companies to suffer in the stock market. This Tuesday, Pinterest Inc falls almost 30%, Meta (Facebook) loses 10% while Alphabet falls 7% and Twitter 3%.
The sector has benefited from the pandemic, which caused a large number of companies to experience a sharp increase in the number of users, who were looking for entertainment and new connection methods from their homes. But with the reopening of activities, social networks suffered a sharp drop in users.
Not the case with Zoom
Zoom Video Communications raised its full-year adjusted earnings forecast on Monday on renewed demand for its video conferencing tools in a hybrid work environment. which made the actions of the company will climb 17% in expanded operations.
However, in a tight labor market, companies are offering hybrid work options, which requires investing in platforms like Zoom to stay connected. for the whole year, Zoom forecasts adjusted earnings per share of $3.70 to $3.77, versus previous expectations of $3.45 to $3.51.
The company also forecasts second-quarter adjusted earnings of between 90 cents and 92 cents per share, above estimates of 87 cents.
Zoom said revenue rose 12% to $1.07 billion in the quarter ended April 30, its slowest growth since going public in 2019. The result was in line with Wall Street estimates, data showed. from Refinitiv IBES. This Tuesday, Zoom falls slightly -0.2% compared to its peers.
Source: Ambito
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