Zoom shares fell as much as 8% in the last two trading sessions, but the stock rebounded nicely Friday, climbing 5.6% to $306.46 Friday afternoon.
"Heading into FQ1 results, we expect Zoom to deliver outsized top-line growth driven by better-than-expected renewals/retention, strong enterprise expansion and ARPU growth from cross/up-sell highlighted by Zoom Phones and Zoom Rooms," said Mizuho analyst Siti Panigrahi in a note.
The firm maintained its buy rating, but did significantly lower its price target to $400 per share from $550 per share as the firm has seen price multiples contracting recently in the high-growth software sector.
Zoom shares are down nearly 50% from their 52-week high as the stock has steadily declined since October. Before that, the work-from-home movement that was made necessary by the global coronavirus pandemic had boosted shares significantly.
Big employers have had mixed reactions to bringing workers back into the office.
"We expect that the future of our company will be a hybrid model, where around 60% of Googlers are coming together with teams in the office a few days a week, another 20% are working in new office locations, and 20% are working from home," a Google spokesperson said.
Meanwhile, JPMorgan will allow 10% of U.S. employees to work from home full-time.