Zoom shares tumble after fresh warnings. New price target below $100? – Idaho Reporter

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Zoom shares tumble after fresh warnings. New price target below $100?

Shares of Zoom Video Communications Inc ( NASDAQ: ZM) tumbled on Tuesday as several security blogs warned about security issues. When the story reached TechCrunch it was already too late for you to sell your shares. But is this a new bottom for ZM?

We doubt it. Zoom shares sunk more than 24% at $121.93 by Tuesday afternoon — hitting their lowest level in a week with a slight rebound on Friday. The stock has lost nearly one-third of its value since the beginning of the week.

Zoom stocks started gaining in value in mid-January and soon skyrocketed to $150. This period (January-February) also marks a period when CEO of Zoom unloaded massive number of shares. How massive? Reportedly that was $38M worth of shares. Eric Yuan made $10.5 million in sales on Jan. 14, another $12.5 million on Feb. 12, and $15.5 million on March 16.

Time for cashing in has come and Mr. Yuan is dumping approx. $10M worth of shares per month.

Some analysts are cool toward ZOOM, with many skeptical that the company can regain dominance in the tele-conferencing market after losing share for several days due to privacy scandals.

Will Zoom continue to be go-to video conferencing app or will the big companies switch to Google Hangouts or Microsoft Teams? If they do that’ll crash $ZM stock.

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