Zoom Share Plunges More than 25 Percent to $376.01 on COVID-19 Vaccine Hope

Shares of Zoom Video Communications Inc plunged immediately Pfizer and German BioNTech announced that their COVID-19 vaccine was more than 90 percent effective in their latest test.

While the news had bolstered global stocks to record high, companies like Zoom and other tech companies that benefited from COVID-19 lockdown are now struggling to sustain their growth as investors doubt their relevance post-COVID-19 vaccine.

The price of Zoom shares plunged by 17.37 percent or $86.87 on Monday to $413.24 per share before depreciating further on Tuesday by another 9.01 percent or $37.23 to settle at $376.01 per share. Bringing total decline in the last two days to 26.38 percent as shown below.

Zoom shares had risen by over 600 percent year-to-date on the back of lockdown that forced businesses and individuals looking to stay in touch despite their lockdown to adopt the video conferencing software on a global scale.

The company’s market capitalisation declined by over $11 billion on Tuesday alone as more investors continue to let go of their Zoom positions.

Zoom market capitalisation now stood at $106.95 billion, down from over $130 billion recorded on October 31, 2020.