Zoom Stock Pulls Back After New Vaccine News

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Zoom stock
Zoom stock

If the coronavirus pandemic has benefited anyone it is the stay-at-home stocks such as Zoom stock. Zoom Video Communications, Inc. grew immensely during the pandemic when consumer patterns were grossly affected. Starting from schools, colleges, Universities arranging daily classes and webinars on Zoom to business meetings and conferences, everything is working on these online video apps. It is difficult to gauge if Zoom stocks’ demand will reduce after the pandemic ends, but the market is indicating this.

Zoom Stock Massive Pull-Back

Zoom stock shares fell sharply on Monday. ZM stocks went down about 30% of their record high. This comes at an interesting juncture. Zoom stocks were thus affected after the release of encouraging Covid-19 vaccine news.

Investors are in a dilemma that when the pandemic-related boost will be over, Zoom stocks will gradually hit the downward curve. This comes against the earlier predictions of the rise of Zoom stocks across quarters 2,3 and 4 of the upcoming year. However, investors are divided on this opinion. Many continue to believe that the alteration in the structure of consumption over the past 12 months will linger even though there is a vaccine. It will take time for the world to reach normalcy even with a vaccine. The complete shift to the earlier mode is not likely any time soon. Hence, half of the investors are confident of Zoom Stocks till at least the first quarter of 2021.

Encouraging News Of Vaccine And Covid-19 Treatment Claimed To Be The Cause Behind Zoom Stock Pull Back

Zoom stock
Zoom stock

The Covid-19 has rendered the market more uncertain than ever. So, it is difficult to know for sure what will happen in the future. But the news about the vaccine and several other news pertaining to antibody treatments and preliminary vaccines and so on has worked out against Zoom stocks and other stay-at-home stocks that were enjoying a massive high all these months.

Bullish investors are of the opinion that Zoom’s business model shows a strong and stable pattern that is less likely to be gravely affected by the pandemic. Analysts come to this opinion by studying the Zoom stock patterns in all the quarters of 2020. In all the quarters, Zoom Video Communications, Inc. came up with an earnings report and the final result ended up being much higher than the estimated figure. The company has been outperforming for the past few quarters that has built up investor-trust in Zoom stocks.

Some investors are also seeing this sell-off as a buying opportunity. These investors rely on the fact that Zoom stock is not likely to decelerate before 2022. The growth curve is bound to take a downturn after some time. But the news of a vaccine cannot be the end of Zoom stock, they believe.