What Happened?
Shares of go-to-market intelligence provider ZoomInfo (NASDAQ:GTM) fell 6.4% in the afternoon session after the company issued a weak financial forecast for 2026, which overshadowed its fourth-quarter earnings beat and led to at least one analyst downgrade. While ZoomInfo reported fourth-quarter earnings and revenue that topped analyst estimates, investors focused on the company's muted growth outlook for 2026. The company's guidance for the full year implied only about 1% growth at the midpoint, which analysts at RBC Capital called "underwhelming." In response to the weak forecast, Citizens JMP Securities downgraded the stock to Market Underperform from Market Perform, citing "increasing competition" and concerns about a "persistent 90% net retention rate." RBC Capital and other firms also lowered their price targets on the stock.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy ZoomInfo? Access our full analysis report here, it’s free.
What Is The Market Telling Us
ZoomInfo’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 4.1% on the news that analysts suggested that the recent "SaaSpocalypse" sell-off had pushed valuations into deeply oversold territory, sparking a wave of opportunistic buying. While the sector had been hammered in early 2026 by fears that autonomous AI agents would replace traditional seat-based subscriptions, institutional investors began rotating back into "sticky" incumbents. This shift was fueled by a Barclays report arguing that corporate transitions away from legacy systems take years, not weeks, providing a protective moat for established providers in compliance and governance.
ZoomInfo is down 31.1% since the beginning of the year, and at $6.63 per share, it is trading 45.7% below its 52-week high of $12.20 from September 2025. Investors who bought $1,000 worth of ZoomInfo’s shares 5 years ago would now be looking at an investment worth $118.90.
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