Zoom Video, one of the pandemic’s most iconic stocks, was downgraded by Morgan Stanley as the company struggled to maintain Covid’s momentum. Analyst Meta Marshall on Tuesday downgraded the video media platform to the equivalent of being overweight. She also lowered her stock price target to $90 from $130. “We are downgrading ZM to EW (from OW) as we believe that implementing value added in ZM will be difficult to achieve over the next 6 months as the normalization of online business continues” . “While we still see significant upside opportunity in the long-term, we believe the near-to-medium-term R/R will be more balanced due to more macro caution and rising interest rates.” Marshall specifically points to the challenges the company is facing in the current inflationary era. She also said it will increase over the next six months as online business more generally finds a happy medium out of the outbreak of the pandemic. Meanwhile, previous company leaders said their profits had been hit by the impact of a strong US dollar on the company’s international sales. Zoom has become the child of the pandemic as it grows in popularity – and valuation – with people moving their lives more and more online. Shares are up more than 700% at their October 2020 highs from earlier that year. But stocks have become less of a favorite as the world economy slowly reopens and people return to the office. Zoom said revenue growth in its fiscal second quarter slowed to 8% from 12% a year ago in the year-earlier period. As of now, the stock is down nearly 60%. Marshall said difficulties from inflation and foreign exchange may have hindered the company’s goal of getting a steady stream of new subscribers in the new year. She also warned that the downgrade could be prudent, noting that the stock has long-term value potential. But the opposite is likely, she said, as stronger-than-expected effects from forex and inflation could make the stock less attractive than she initially pegged it in the short-term. “We will be looking for opportunities to turn ZM more positively with signs of stability in the direct business along with continued Business growth,” she said. – Michael Bloom of CNBC contributed to this report.