Amid this coronavirus pandemic, Eric Yuan, founder of Zoom Stock, has become the new poster boy for the stock market.
This pandemic has been able to assemble over 300 million people and organizations to join Zoom Visual Communications Inc. for various purposes each day. As a result, Zoom stock has upswing by 500% in 2020. This made Eric Yuan rank 40th on a list of wealthiest people with a value around the world of $28.6 billion.
On Monday, Pfizer announced that their coronavirus trial vaccination has shown effectiveness on over 90% of infections. Thus, Pfizer and BioNTeach’s vaccine is the most successful against COVID-19 with great hope to curb the pandemic. Following this announcement, the stock prices of airlines, hotels, and oil industries have taken a huge leap upwards. However, the stock prices of companies soaring due to the pandemic lockdown and ‘work from home’ situation have suffered a setback. The Asian glove-makers also witnessed an increase in demand on Tuesday.
These fluctuations in the market have raised an important question regarding the future of Zoom stock once the pandemic is over.
Expected Volatility For Zoom Stock
Mandeep Singh, an analyst at Bloomberg Intel believes that e-commerce and AV enterprises are unlikely to suffer due to the success of the vaccine. He said this is regular volatility and will not have any negative impact on the digital industry which has a bright future.
Yuan lost over $5 billion as Zoom stock in New York dropped by 17% this Monday. However, he has sold shares worth $275 million within 2020 itself and he is valued at $20 billion.
Peloton is the creator of the fitness firm, John Foley and he lost almost $300 million following a market loss of 20%.
Reed Hastings, Head Executive official at Netflix lost $416 million.
Forrest Li, founder of the Sea e-commerce group suffered a loss of approximately $1 billion.
This Tuesday, five glove-making billionaires suffered great losses after their stock prices increased exponentially during this ongoing pandemic. Top Glove Corp. witnessed a loss of 11%, while Riverstone Holdings Ltd. Declined by 13%. Kossan, Hartelega, and Supermax companies experienced a decline of over 8%.
Fred Smith, Chairman of FedEx, lost $250 million after the company slumped by 5.7%. CEO of Zscaler, a cybersecurity company, and co-founder of Ocado, e-commerce, experienced a huge drop as well.
Some other business enterprises witnessed some upswing in their stock prices and an increase in wealth. Fashion retail founders of Zara experienced some upsurge in share prices due to the hope of ending the pandemic.
Rowling hotel firms and businessmen, Schaeffler, and Deichmann added more financial wealth.
Kelly Steckelberg, CEO of Zoom stated that nobody will discard their services after the coronavirus pandemic. He believed virtual communication is an integral part of everybody’s life.
Therefore, there is no need to be disheartened by this sudden fall in Zoom stock as things will soon become normal and profitable.