Zoom Video growth outlook below expectations, says MoffettNathanson

MoffettNathanson analyst Sterling Auty raised the firm’s price target on Zoom Video to $85 from $80 and keeps an Underperform rating on the shares following the Q4 report. The company’s operating margin guidance might be well ahead of Street estimates, but that should not come as a surprise given the 1,300 employee layoff announced on February 7, the analyst tells investors in a research note. The firm says Zoom’s fiscal 2024 revenue growth outlook is now 1.2% at the midpoint, below expectations of 4.5%.