(C) Reuters. Will Zoom Video Keep Losing in 2021?
Zoom (ZM) became synonymous with remote conferencing last year as COVID-19 lock-down restrictions made the service a group-communications go-to. The stock thus enjoyed immense investor attention. However, given the extensive vaccination drives so far this year, many organizations may now be considering a resumption of physical conferences at the expense of virtual ones. Also, major tech companies are now offering similar services. So, the question is, will ZM be able to regain its momentum this year?. Zoom Video Communications , Inc. (NASDAQ:ZM) quickly became a household name last year thanks to remote working and learning trends adopted amid the COVID-19 pandemic. However, the stock has been quite volatile over the past few months in-part because investors have been weighing the effects of new coronavirus spikes in some parts of the world versus positive vaccine news. While the stock has delivered 158.2% returns over the past year, it has lost 4.7% year-to-date. The stock is currently trading 45.4% below its 52-week high of $588.84.
This month, a lawmaker from Russia’s ruling party floated the idea of banning ZM after the company reportedly told its distributors to stop selling subscriptions to Russian state institutions. And according to an outage tracking website Downtector.com, more than one thousand Zoom users were affected in March 2021 when ZM’s video-conferencing platform went down. Furthermore, because several users are reporting ‘Zoom Fatigue,’ the demand for the company’s products and services could decline significantly as the global economy reopens and people return to their offices.
Will Zoom Video Keep Losing in 2021?
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