Zoom Video Communications Inc (ZM Stock) continues to tumble amidst COVID-19 vaccine news

NASDAQ:ZM has just suffered its largest weekly drop as the industry leader in video conferencing software has seen its stock fall over 20% this week on the news of a potential vaccine for the novel coronavirus. On Friday, shares fell a further 5.85% to close the week at $403.58, but the stock did briefly touch below the $400 price barrier for the first time since late August. While Zoom has still returned investors over 500% over the last year, shares are now down over 30% off of its 52-week high price of $588.84.

It has been a rough week for the entire stay-at-home sector as news of Pfizer (NYSE:PFE) and BioNTech’s (NASDAQ:BNTX) vaccine with above 90% efficacy has taken the winds out of their proverbial sales. Other companies like Peloton (NASDAQ:PTON), Docusign (NASDAQ:DOCU), and Netflix (NASDAQ:NFLX), have all crashed since the announcement. Many of these stocks had been screaming hot during the pandemic as high usage and little competition created a unique opportunity for these companies to capitalize on. This may be more about investors realizing their gains from over the past few months causing a correction in stocks that were trading at sky-high valuations.

ZM stock forecast

Has the correction brought these stocks down too far? Wealthwise Financial CEO Loreen Gilbert has lamented that these at-home stocks may have limited growth opportunities moving forward as the world slowly begins to work its way out of this pandemic. With cases spiking, and Pfizer confirming that 2021 will only see a maximum of 1.3 billion doses, we could still see the effects of COVID-19 carry on into the new year. If these stocks correct any further, it does represent a nice buying opportunity, especially with Zoom’s quarterly earnings call coming up at the end of November.