On August 26, Zoom fell 5.86% in pre-market trading, trading at $95.3/share, with turnover of $156,800.

The decline was triggered by disappointing Q3 guidance issued alongside otherwise strong Q2 results. Zoom reported Q2 adjusted EPS of $1.55, beating the consensus estimate of $1.48 by 4.73%, while revenue of $1.28 billion also exceeded the $1.27 billion estimate. However, the company guided Q3 non-GAAP diluted EPS of $1.46 to $1.48, falling short of analysts' expectation of $1.50, signaling that intense market competition continues to pressure near-term profitability.

Despite positive developments including raised full-year EPS guidance to $6.08-$6.12 (above the $6.04 consensus), enterprise customers contributing over $100,000 reaching 4,625 (exceeding the 4,603 estimate), and accelerating AI monetization with nine of the top ten Zoom CX deals including paid AI features, the market chose to price in the softer near-term outlook. The stock had previously received upbeat analyst coverage, with BofA initiating at Buy with a $130 target and UBS raising its target to $115.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)