Many investors believe that Zoom Video is only a 'COVID stock', meaning that substantially all of the company's business over the past year was due to COVID and there is a perception that when the world goes 'back to normal', that Zoom will encounter a substantial loss of business. Food and Drug Administration issued the first emergency use authorization (EUA) for Pfizer-BioNTech's COVID-19 vaccine. Since reaching those highs in October, Zoom's stock has drastically backed off the highs, with some of the reason partially due to valuation but the other part of the reason was the introduction of the COVID-19 vaccine. Zoom Video opened at $66.63 on January 6th, 2020 and by Octoreached an all-time closing high of $568.34.

Zoom Video's rapid expansion also brought a rapid expansion in the stock price. And by April, that number had already grown to 300 million daily meeting participants, so 30-times growth within a matter of months. Just to give an idea of Zoom's growth because of the pandemic, in December of 2019, Zoom was averaging 10 million daily meeting participants. When COVID-19 reached American shores like a tidal wave in March 2020, social distancing directives forced large swaths of society online and one of the primary ways businesses of all types and schools functioned was through the use of Zoom Video's Meetings and Chat products, Rooms and Workspaces products, Phone System, and Video Webinars. Zoom Video (NASDAQ: NASDAQ: ZM) is perhaps the biggest winner from the acceleration of digital transformation that has occurred because of the pandemic.

Zoom video stock