The video conferencing company isn't part of a big suite offered by a big tech company that will be maintained long after the pandemic ends. Zoom's slowing growth is a sign that both workers are going back to the office and that big tech's assault on its business is starting to take hold. Here's why I think selling would be the best option for Zoom long-term, plus three potential buyers who could use Zoom in their portfolios. These may be early signs that Zoom is finding it hard to grow its footprint in enterprise markets, and its best option may be to simply sell to a bigger rival. That's potentially a decline sequentially, which is terrible for a growth stock trading for 24 times sales. After reporting second-quarter 2021 revenue of $1.02 billion, up 54% from a year ago, management expects revenue of $1.015 billion to $1.02 billion in the third quarter. So why is Zoom's stock down 42% from its all-time high, and in freefall after another strong quarterly report? A big reason is that growth is slowing to a halt at Zoom. The company has built an easy-to-use video conferencing app that's attracted millions of users, and Zoom's revenue is up around 10x in the last three years as a result.

Since the beginning of this year, Zoom has lost about half of its market capitalization-dropping from $54 billion to $27 billion alongside a declining stock market.Zoom ( ZM 0.42%) was arguably the biggest winner from the pandemic, becoming not only an indispensable tool for schools and businesses but also a household name. The mania was so dramatic that other publicly traded companies with Zoom-like names saw their stocks pop, too. Zoom’s stock shot up during the first year of the pandemic: from $89 a share on Feb. The company offers a free version of its product to consumers (with time restrictions on calls) but makes money through business-to-business sales. While virtual-work competitors like Google (Google Meet) and Microsoft (Teams and Skype) offered similar products, Zoom represented a pure-play investment opportunity for investors seeking exposure to the budding remote work revolution.

All that translated to the company’s bottom line: Sales were up 326% in 2020, to $2.6 billion, while profits rose to $672 million, from just $22 million in 2019. When the pandemic hit the US, Zoom usage soared overnight-the software was ubiquitous for anyone working a desk job, or trying to stay connected to friends and family while social distancing.

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