Zoom Communications Services Back Online After 3-Hour-Long Global Outage: Retail Sentiment Takes A Hit

Zoom Communications, Inc. (ZM) confirmed that its services have been restored after an earlier outage that impacted several users.

In a post on its X handle, the company reported the outage at around 4:30 p.m. ET, adding that a restore was underway. Shortly after, the company confirmed that its services were back to normal.

A report from Downdetector, a platform that monitors and reports outages with online services, showed that the outage began around 2:30 p.m. ET and lasted through 6 p.m. ET, with stray reports trickling in even after that. 

At the outage’s peak, more than 67,000 users reported issues, according to the platform.

Replying to Zoom Communications’ post about the outage and the subsequent restoration, one social-media user blamed the company for reporting it two hours into the outage.

Another user contended that the outage was a global outage affecting all users and not "some" as suggested by the company. 

But another empathized with the company. “Outages happen - even google's historic outage in 2000 was just 3 minutes long! we'll get through this too,” they said.

On Wednesday, Zoom Communications stock fell 1.66%, not worse as the tech-weighted Nasdaq Composite’s 3%+ slump. It gained 0.39% in the after-hours session.

Retail sentiment toward Zoom Video took a hit, with the sentiment meter on Stocktwits showing a score (39/100) suggesting ‘bearish’ mood by late Wednesday. This marked a deterioration from the ‘neutral’ sentiment a day ago.

Message volume picked up slightly, although was at ‘normal.’

A bearish watcher began to brace for the worst. 

Zoom Communications shares currently trade way off their 2020 peak of $588.84, as the company capitalized on its credentials as a COVID-19 play amid the work-form-home mandate that was in play. 

The stock is down about 13% for the year-to-date period. 

The Koyfin-compiled consensus price target of $89.36 for Zoom Communications suggests it is trading at a 26% discount.

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