On Apr 8, 14:50 EDT Buzzfeed News reported that Google banned Zoom video-conferencing software from employees’ computers, citing security vulnerabilities and just an hour later Zoom (NASDAQ: ZM) shares tanked 12%. Now, as already mentioned in our previous piece on Zoom, we might even see the shares below $100.
Zoom Video Communications Inc had a pretty good run when it comes to the market performance. ZM started this year at $68 and soon jumped all the way to $135,18 on March 24, marking its all time high price, just 2 weeks ago.
But the times have changed and ZOOM is not the coolest kid on the block anymore.
Security issues are a big news and market is reacting negatively.
The latest nosidive for ZM shares is followed by a huge volume today with more than 24,000,000 with average volume being only 16,248,531. Five day change for ZM is -15,73% while market cap for Zoom is currently 31,736,250.
We maintain our Buy rating even though the week was clearly a disappointment. When we look out, the key trends are still intact in terms of getting new customers and growth, since coronavirus is not going to wanish any time soon.