Shares of Zoom Video Communications (NASDAQ:ZM) have been rising right this moment as COVID-19 instances within the U.S. and Europe proceed to climb. As fears that instances of the illness will enhance throughout the fall and winter, buyers have once more centered their consideration on tech shares that they imagine will probably be in demand throughout the pandemic.
Zoom’s inventory was up by as a lot as 5.three% right this moment however had gained three.2% as of two:15 p.m. EDT.
Expertise shares have been in demand for the reason that pandemic reached the U.S., and buyers look like persevering with that pattern with Zoom’s share-price bump right this moment. As lockdowns and social distancing have gripped the U.S., Zoom’s inventory has skyrocketed, rising 750% for the reason that starting of this yr.
Medical specialists within the U.S. have warned that there may very well be a surge of COVID-19 instances within the fall and winter, and final week 10 states reported their highest single-day case counts. Moreover, 27 states are seeing their case counts climb. And as instances have elevated in Europe, native governments in Paris and London lately elevated social restrictions of their cities.
It seems that buyers predict that the rise in instances will result in much more social distancing, which may enhance utilization of Zoom’s video calls.
Whereas Zoom’s inventory has been on a tear this yr, buyers ought to understand that there’s nonetheless a whole lot of uncertainty surrounding the U.S. financial system, the presidential election, and the pandemic. All of these issues may trigger sudden volatility within the inventory market within the coming months.