The economic impacts of the COVID-19 outbreak and the subsequent government lockdowns have been overwhelmingly negative. We have witnessed unprecedented job losses over the past two weeks in North America. Entire industries like restaurants and theatres have been shut down entirely. However, a handful of companies have emerged to shine in this strange and panic-ridden world.
Zoom Video (NASDAQ:ZM) is an American remote conferencing services company. Demand for its service has skyrocketed with so many employees being forced to resume their work from home. The estimated net worth of founder Eric Yuan had increased by more than $4 billion by the end of March. Yuan noted that the company had reached 200 million daily participants in March.
Naturally, this has attracted the attention of investors. The stock has climbed 90% over the past three months as of close on April 3. However, shares have taken a hit over the past week – dropping by 15%. Zoom was hit with negative reports that had to do with its approach to privacy and security on the platform.
Zoom has enlisted the help of its engineers and has frozen all feature releases until it can get a handle on the rise of malicious actors hijacking conferences. Yuan has vowed to host weekly webinars that will focus on beefing up privacy and security.
This lockdown may be temporary, but it may forever impact the nature of work in the 21st century. Its latest drop presents an opportunity for investors to buy-the-dip in this exciting company.
