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

GBP/USD tumbles from the highest since 2018 on the Brexit impasse

The GBP/USD roller coaster continues with a downfall below 1.35 after the pair hit a 31-month high of 1.3539 earlier. Brexit talks have yet to yield an agreement. Negotiations are set to continue through the weekend.

GBP/USD News

EUR/USD battles 1.2150 after disappointing NFP

EUR/USD is trading off the 32-month highs amid bumps in US stimulus and vaccine distribution. Markets await the all-important US Nonfarm Payrolls missed expectations with 245K jobs gained in November. 

EUR/USD News

XAU/USD fails to break $1850 and turns to the downside

Gold peaked after the beginning of the American session at $1848/oz reaching the highest level since November 23 and then turned to the downside. It bottomed at $1829 and is it about to end the week hovering around $1830.

Gold news

Dollar downfall explained and what's next for markets

The safe-haven US dollar is hitting multi-month and multi-year lows against its peers while stocks are on fire. What is behind the risk-on rally? Valeria Bednarik, Joseph Trevisani, and Yohay Elam discuss markets' moving parts as 2020 nears its end.

Read more

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures