Like each and every one of us who got used to working in our pyjamas, Zoom has had a rude post-COVID awakening.
What happened: Zoom has been dropped from the Nasdaq after failing to meet the technology-focused index’s listing criteria, as return-to-office mandates and increased competition quell the company’s growth prospects, according to Bloomberg.
- Shares of the video conferencing platform — which rallied almost 400% in 2020 — have underperformed compared to the rest of the market in 2023, rising only 5.7%.
Why it matters: Inclusion in the Nasdaq really helps a company’s investment prospects, and as Zoom tries to claw its way out of its current rut, getting booted from the world’s biggest tech index could make the climb back to its past performance even tougher.
- Zoom’s troubles speak to a trend of pandemic-era successes like Peloton and DocuSign that struggled to maintain growth as people headed back into the world.
What’s next: Secondary products, like Zoom’s messaging platform and phone service for businesses, will become all the more critical to ensuring the company’s future success.—LA