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

NASDAQ:ZM plummets a further 5.85% to close out a tumultuous week.
Wealthwise Financial CEO laments work from home stocks as limited growth potential.
News of a potential COVID-19 vaccine has soured investors on the previously red-hot stock.

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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram