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Shares of ZoomInfo Technologies (GTM) hit record lows on Tuesday following multiple analyst downgrades after the company’s first-quarter earnings report.
At the time of writing, GTM shares traded over 33% lower.
According to TheFly, Canaccord analyst David Hyned downgraded the stock to ‘Hold’ from ‘Buy’ and also lowered its price target to $5 from $12.
The firm stated that ZommInfo’s long-term vision of introducing licensing flexibility and streamlining cost structure are positives for the company; however, they have "effectively put the brakes on any near-term recovery story."
Canaccord also said that it does not expect the company to return to positive growth sequentially or year-over-year until sometime in the second half of 2027.
BTIG also lowered ZoomInfo’s rating to ‘Neutral’ from ‘Buy’. The firm stated that ZoomInfo's first-quarter results left it with "materially higher conviction that questions now extend across the broader business."
BTIG also noted that the seat-based pricing contribution has been declining since 2022, and the company's chiefs now plan to roll out a hybrid pricing model in the third quarter. While it will provide greater flexibility, it creates a near-term headwind as customers renew at lower price points.
Meanwhile, Citizens reduced the company’s price target to $2.50 from $6. The firm kept an ‘Underperform’ rating on the stock.
Citizens stated that ZoomInfo reported mixed first-quarter results and “meaningfully lowered expectations for 2026 on both the top and bottom lines due to more customer confusion and increased macroeconomic uncertainty.” The firm remains cautious as ZoomInfo transitions to a consumption-based model, with new flexible pricing launching in Q3.
According to data from Koyfin, four of the 22 analysts covering ZoomInfo rate it ‘Buy’ or higher, while 12 recommend a ‘Hold’ rating and six rate it a ‘Sell’ or higher. The 12-month average price target on the stock is $7.13, representing a potential upside of nearly 18% from Monday’s closing price.
The company now expects full-year revenue to be in the range of $1.185 billion to $1.205 billion, down from $1.247 billion to $1.267 billion previously, while it maintains its adjusted net income guidance of $1.10 to $1.12 per share for the same period.
On Stocktwits, retail sentiment surrounding the stock has improved to ‘extremely bullish’ from ‘neutral’, while message volume has also risen to ‘extremely high’ from ‘normal’ in the past 24 hours.
One user on Stocktwits said the stock's sell-off is completely unwarranted.
Shares of ZoomInfo Technologies have declined more than 59% so far this year.
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