Topline
Zoom shares fell to their lowest price since the early days of the pandemic Tuesday, causing Zoom founder and CEO Eric Yuan’s net worth to drop $2 billion, as Wall Street fears the video conferencing company will continue on its worrisome revenue trajectory as Americans return to the office.
Zoom founder and CEO Eric Yuan shed $2 billion in net worth as his company’s stock stumbled Tuesday. … [+]
Key Facts
Zoom shares dropped 17.8% to $199 in Tuesday trading and are now down 66.2% from the stock’s October 2020 peak price of $588.88.
In a Monday earnings call, Zoom reported revenue growth fell to its lowest level since the company went public in 2019, though it did beat analyst estimates for earnings per share and revenue.
Yuan’s fortune fell to $9.9 billion Tuesday according to Forbes’ estimates, down $4.6 billion since the Forbes 400 list was published last month.
His net worth hit as high as $24 billion in October 2020 when Zoom stock was trading at its all-time high.
Key Background
Zoom is the latest business that thrived amid stay-at-home orders to see a major drop in its stock price this month following disappointing earnings reports. Shares of at-home fitness company Peloton fell 30% in the day following its earnings call and currently trade at 75% less than its peak price achieved in December 2020. Shares of TV maker Roku, a fellow pandemic darling, are down about 30% over the last month as the market continues to correct as the U.S. approaches a return to pre-pandemic life.
Crucial Quote
Yuan told Forbes in September when Zoom’s stock began to lose its pandemic-fueled momentum: “I really don’t care about these short term moves of the stock price. This will not change anything about our company.”
Further Reading
Zoom on pace for its worst day ever after Wall Street slashes price targets (CNBC)
Peloton Shares Plunge Over 30%—And CEO John Foley Is No Longer A Billionaire (Forbes)
