How Much Could You Lose In Zoom Stock?

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Zoom Communications (ZM) stock fell 3.3% on October 22, 2026, while the S&P 500 slipped 1.2%. The shares now sit 14.0% below their highest close of the past year. A broad market sell-off is one risk owners should weigh. So how far has Zoom stock fallen when the whole market turned, and how long have holders waited to get back?

How Far Has Zoom Stock Fallen In Market Shocks?

Zoom’s deepest fall in a market shock came during the 2022 inflation surge and Fed tightening. The stock fell 61%, against a 24% decline for the S&P 500. Zoom has never made that loss back: its latest close is still 47.8% below where it closed on January 3, 2022.

That fall was the extreme, but it is counted in Zoom’s average. Across the six market shocks it has traded through, the stock fell 20.1% on average, against 16.8% for the S&P 500. In the 2023 SVB regional banking crisis, Zoom fell 20% while the index fell 6.7%.

Five of those six falls have been made back. The median wait from the low to the earlier high was 2.0 months. After the SVB crisis, though, Zoom took 18.2 months to get back to its earlier high.

How Big And Profitable Is Zoom Today?

Zoom brought in $4.99 billion of revenue over the four quarters ended July 31, 2026, up 5.0% from a year earlier. Growth has picked up two years running, from 2.8% and then 3.6% in the two earlier twelve-month periods.

Zoom also keeps more of each sale as profit. Its operating margin was 23.7%, up from 20.4% a year earlier. By comparison, the S&P 500, taken as one company, has an operating margin of 18.5%. Zoom carries almost no debt, with $60 million at the end of July against $7.25 billion of cash and short-term investments.

Where Zoom’s Business Is Under Pressure Now

Management expects growth to slow in fiscal Q3 2027. On its August 25, 2026 call, Zoom guided to revenue of $1.275 billion to $1.28 billion for that quarter. That is 3.9% growth at the midpoint, after 4.9% in fiscal Q2.

The slower part is Zoom’s Online business, while Enterprise revenue, 62% of the total, grew 7.8% in fiscal Q2. Management now expects flat Online growth for the year, after earlier calling for slight growth. Management said the change came from shifts it saw in fiscal Q2 in how people discover products, moving from search to AI. Churn from a white-label deal took about 0.4 percentage points off total revenue growth, and management said this will also weigh a little more in the second half.

Costs are rising as well. Management said expenses grew in fiscal Q2 as AI usage spiked with new products. Management also noted that acquisitions such as Common Room, its largest to date at $250 million, do not come with Zoom’s margins.

Zoom is expected to report its fiscal Q3 2027 results in November 2026. Growth in its Online business, which management now expects to be flat, is the measure to watch.

Does This Mean You Should Act On ZM?

Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.

There is a smarter approach. Since its inception, the Trefis High Quality (HQ) Portfolio has returned 105%, beating the benchmark that combines the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000. And it did so without taking the concentrated risk that comes with do-it-yourself stock picking. If that is how you want to invest, the HQ Portfolio is the place to start.

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