despite surpassing earnings expectations in its secondquarter report shares of zoom video communications plummeted tuesday morning as analysts zeroed in on the companys diminishing growth prospects as inperson activity starts picking back up—making the former pandemic stock darling the latest casualty in a market now favoring the postcovid environment zoom shares fell more than 15 in premarket trading tuesday tanking the companys market capitalization to about 86 billion and wiping out more than 15 billion in market value the stock plunge started monday evening after the companys secondquarter earnings release in which zoom posted record revenue of 1 billion up 54 year over year despite executives acknowledging sales would likely slow after unprecedented growth at the height of pandemic uncertainty last year we are happy people feel more comfortable out and traveling but thats really why were seeing the slowdown chief financial officer kelly steckelberg said in a postearnings call noting the pandemic recovery has happened a little bit more quickly than the company previously expected further fueling the stocks selloff a slew of wall street analysts lowered their price expectations for zoom shares tuesday morning with deutsche banks matthew nikam noting the sharply moderating growth would force the companys valuation back down to earth after a meteoric rise of as much as 730 last year despite the widespread bearishness market analyst adam crisafulli founder of vital knowledge media called the stocks decline overdone in a tuesday email pointing out zooms enterprise business which caters to corporations didnt slow down despite the slower growth in business targeting individuals and small business in the postearnings conference call ceo eric yuan promised to double down on the companys enterprise segment saying zoom stands to benefit from an increasing number of companies opting to embrace a hybrid work model in which some employees continue working remotely with shares down about 48 from their october record high zoom is only the latest pandemic stock darling now facing a stark reversal of fortunes last week peloton stock sank nearly 13 after the company similarly failed to impress investors with its secondquarter earnings report shares are now down 30 this year despite skyrocketing nearly 400 in 2020 virtual healthcare company teladoc and even ecommerce juggernaut amazon are also among stocks posting negative returns this year after an early pandemic surge the broader technology sector has also struggled to keep up with its explosive growth from last year though it skyrocketed 43 in 2020 the techheavy nasdaq is up just 20 this year while the sp 500 has climbed 22 a lot of the big pandemic beneficiary companies posted underwhelming secondquarter earnings reports but zoom was one of the best crisafulli says it clearly isn’t blowing away wall street like it did during the course of the pandemic and that may be considered a kneejerk negative but its business is actually proving to be resilient sp 500 nasdaq surge to new record highs again as tech stocks lead fedsparked rally forbes