Zoom Stock Pulls Back as Investors Shake Off Omicron Worries

The majority of analysts rate Zoom stock a "hold"

Assistant Editor
Nov 29, 2021 at 9:34 AM
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Just when it seemed like Zoom Video Communications Inc (NASDAQ:ZM) had a chance to reclaim its pandemic-era glory following the emergence of the omicron Covid-19 variant, the tech concern saw its shares fall once again as investors shed stay-at-home staples. The equity was last seen down 2.3% to trade at $215.10, following in the footsteps of other notable pandemic darlings like Peloton (PTON), Netflix (NFLX), and Teladoc (TDOC), as investors brushed off the new variant.

Separately, ZM is receiving additional attention from Chantico Global founder and CEO Gina Sanchez, who said that Microsoft (MSFT) is superior to Zoom on all counts at their current levels of trading. These comments come after Cathie Wood, CEO of Ark Invest, called Zoom "one of the most important communication companies to come along in many decades."

On the charts, Zoom stock has been rapidly falling this month, dropping below the $200 mark on Nov. 23 to trade at its lowest level since May 2020. ZM is entering today's session fresh off of its fifth-straight weekly loss, and now sports a 50.4% year-over-year deficit.

Of the 21 analysts in coverage, nine carry a "buy" or better rating, while 12 rate the equity a tepid "hold." Meanwhile, shorts have been jumping ship, with short interest down 17% during the most recent reporting period. 

 

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