ZoomInfo Technologies Inc. (NASDAQ:GTM) is a leading software company that provides a go-to-market intelligence platform for sales and marketing teams. It offers businesses access to a large database of contact and company information. ZoomInfo is now under investigation by the Pomerantz law firm for potential securities fraud or other unlawful business practices.
The investigation follows ZoomInfo's first-quarter 2026 financial report. The company significantly lowered its full-year revenue guidance, which is its forecast for future sales. The new range of $1.19 billion to $1.21 billion is well below the $1.26 billion that analysts expected, signaling concerns about future growth prospects.
In response to the lowered forecast, multiple analysts downgraded the stock. For example, as highlighted by TheFly, Mizuho Securities set a new price target of $3.00 for ZoomInfo. This action shows a lack of confidence from market experts, who believe the stock's value will decrease further from its price of $4.06 at the time.
The news caused ZoomInfo's stock price to fall $1.98 per share, a 32.78% drop, closing at $4.06 on May 12, 2026. The stock continued to fall, hitting a new 52-week low of $3.76. The company also announced a major restructuring, cutting about 600 jobs, or 20% of its workforce.
Despite the negative outlook, ZoomInfo's past performance was strong. On May 11, 2026, it reported revenue of $310.20 million and an earnings per share of $0.28, beating analyst estimates. This shows that investors are reacting more to the poor future guidance than the solid results from the previous quarter.
