Shares ZoomPremarket trading on Tuesday saw a 10% drop in shares following a warning from video-chat firm investors of a revenue growth slowdownFirms have been able to reduce their stock price targets as a result.

Zoom, which went from being an obscure business software niche to become a popular household product was one of the pandemic darlings. The company’s technology has been used by millions of people over the last two years to help them with their school work, socializing and other activities. As people return from school and work, however, the growth rate is slowing.

BTIG reduced its price target from $460 to $400, and reiterated its Buy rating. However, it stated that the reduction was made to “better reflect market sentiment” and to group multiple compression.

Deutsche Bank Research cut its 12-month goal to $280, from $350.

The researchers said that while we are positive about Zoom’s investments and strategic initiatives in key growth areas and we appreciate their efforts, it is more difficult to love a stock with a steeply declining growth rate and increased pressure on profitability.

Guggenheim and Baird also reduced their price targets. Wall Street, however, is still positive about Zoom’s prospects.

Baird research team wrote Tuesday that moderate growth had been and will continue to be a stock headwind in the near term. However, we are positive about the long-term and platform opportunities, particularly when the growth rate slows down over the next few quarters.

Zoom’s quarter ended October 31 saw a 35% increase in revenue compared with a year prior. This was a decrease of 54% in quarter. Zoom projects adjusted earnings at $1.06 to $0.07 per share, based on revenue between $1.051 billion and $1.053 trillion, which translates to 19% growth.

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

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