Zoom Video Communications (NASDAQ: ZM) stock has already been struggling with households and businesses making a return to in-person activities, but economic uncertainty is creating even more issues headed into 2023. Zoom shares are now down nearly 60% in 2022 after the last earnings update, even as the business itself continues to (slowly) expand. Zoom's customers are clearly being impacted by macroeconomic factors, which is trickling down into key performance metrics for the company itself.
In 2022, these once seemingly unstoppable investments have plunged into the red, undoubtedly impacting many portfolios.
Real profits are crashing as the software company hands out stock-based compensation while buying back shares to offset the dilution.