In a not so surprising move, shares of Zoom Video Communications slumped on Monday when global stocks were flying on COVID-19 vaccine hope.
The company’s shares depreciated by 17.37 percent after news of a possible COVID-19 vaccine hits the media. Investors are projecting that the video conferencing app may not be as effective once there is a vaccine given that it was COVID-19 lockdown and restrictions that led to its sudden rise to fame and global adoption.
The company’s share price rose from under $70 a share in January before the COVID-19 to over $500 before declining by $86.87 or 17.37 percent to $413.24 per share on Monday.
Zoom was one of the biggest tech companies to profit big from the COVID-19 after its software attained global recognition among businesses and individuals looking to sustain operations or stay in touch during the COVID-19 lockdown. The company’s share has risen more than 600 percent year-to-date with the company’s market value hitting $117.53 billion Tuesday morning.
Source: Naija News