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    Ribbon Communications (RBBN) Fails To Sustain Covid Growth

    By Wasim Omar

    Oct 22,2022

    2:11 AM UTC

    Ribbon Communications Inc. (RBBN) is a US-based communications company that specializes in cloud technology, as well as in a range of related software and hardware products. It is currently experiencing a slowdown from its impressive Covid-era boom

    The Covid Boom for RBBN

    Ribbon Communications (RBBN) experienced explosive growth with the outbreak of the Covid-19 pandemic. Lockdowns and the remote-work concept resulted in surging demand for cloud storage services, which resulted in a 50% topline growth figure. During this time, Ribbon also expanded to a number of markets including the US, Europe, and Australia. The result was a jump in its overall return on equity, much to the delight of its shareholders. RBBN, during 2021, penned a number of multi-million dollar deals with high-profile ensuring long-term profitability. The company has strongly capitalized on its competitive strengths in both Edge and Cloud service offerings.

    Ribbon’s Business Slowdown

    In recent years, it had become evident that Ribbon is unable to sustain its Covid-level growth at all, which brought investor optimism crashing down. Where topline growth in 2020 stood at 50%, it had come crashing down to only 0.14% in 2021, and 0.6% in 2022. Given such a turnaround in performance, the market was quick to correct RBBN stock price, which had shed almost 60% of its price this year, and is down to $2.70. In comparison, the stock was trading at over $11 in early 2021. Given the present bearish market conditions, it is no wonder investors are hesitant to hold this declining value burner any longer.

    Conclusion

    RBBN is a stock that has lived through its days of glory and is evidently a dying beast now. It is apparent that the business is unable to sustain its growth levels during the Covid-19 boom, and has hence lost its appeal as a growing tech star, with its sights set high.

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