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

ZM stock price chart

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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD stays depressed near 1.2050 amid firmer yields, ahead of Powell

EUR/USD remains on the backfoot around 1.2050, as the US dollar rises with Treasury yields. Concerns about the pace of the yield surge dent the risk appetite. Focus on EZ retail sales and US data ahead of Fed Chair Powell’s speech.


GBP/USD steadies around 1.3950 as bond bears catch a breather ahead of Powell

GBP/USD picks up bids around 1.3950 following a bounce from 1.3921. UK unilaterally extended NI border checks, EU vows legal response. US Treasury yields regain upside momentum, driving the US dollar higher. Fed’s Powell will be watched to confirm reflation fears.


Gold’s fate hinges on Treasury yields, Powell’s speech

Gold struggles with its rebound as DXY firms up with Treasury yields. XAU/USD reached fresh nine-month lows at $1702 amid a renewed uptick in the US Treasury yields, as the bond market turmoil resumed on Wednesday. 

Gold News

Dogecoin Price Forecast: DOGE’s 50% lift-off delayed due to lack of volatility

Dogecoin price broke out of a descending triangle pattern on March 1. Dogecoin price has been traversing the descending triangle formation for more than 20 days—however, the recent swing high lead to a bullish breakout. Now DOGE eyes a 50% upswing to $0.076.

Read more

DXY continues to gain on Wednesday, eyes 91.60

US dollar firm and approaching Feb 4th highs from a significant technical support structure. US economy moderately gathering pace according to the Fed's Beige Book.

US Dollar Index News