Zoom shares fell 10% in pre-market trading on Tuesday after the video chat company warned investors of slowing revenue growth, leading some companies to lower their price targets on the stock.

Zoom was one of the darlings of the pandemic, moving from a relatively niche business software segment to a household product. Millions of people have used the company’s technology over the past two years to study, work or socialize. But growth slows down as people return to work and school.

BTIG, which lowered its price target to $ 400 from $ 460, reiterated its buy rating, but said the cut was intended to “better reflect current market sentiment and consolidate multiple squeeze.”

Deutsche Bank Research also lowered its 12-month target to $ 280 from $ 350.

“While we are positive about Zoom’s strategic initiatives and investments in key growth areas, we find it harder to like a stock with more strongly decelerated growth and incremental pressure on profitability,” the researchers wrote in a note on Tuesday.

Baird, Guggenheim, Wells Fargo, Stifel, UBS, Piper Sandler and KeyBanc also lowered their price targets. But Wall Street is generally still optimistic about Zoom’s future.

“Moderate growth has been and may continue to be a headwind for equities in the near term, although we remain positive on long term growth and platform opportunities, particularly as the growth rate has declined. declined over the next two quarters, “Baird researchers wrote on Tuesday.

Zoom’s revenue grew 35% year-over-year in the quarter, which ended October 31, slowing from the 54% growth in the previous quarter. For the fiscal fourth quarter, Zoom expects adjusted earnings of $ 1.06 to $ 1.07 per share on $ 1.051 billion to $ 1.053 billion in revenue, implying growth of 19%.

– CNBC’s Michael Bloom and Jordan Novet contributed to this report.

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