Zoom Video stock closes up nearly 15% as coronavirus makes ‘face to face’ meetings less attractive
Zoom Video Communications Inc. shares rallied for their best day in nearly eight months Monday as analysts said coronavirus fears and competitive questions seemed to drive investors toward the videoconferencing stock.
Zoom shares closed up nearly 15% at $87.66, after touching an intraday high of $88.94, for their best one-day performance since June 7, when shares finished up more than 18%.
Stephens analyst Ryan MacWilliams, who has an overweight rating and a $95 price target on the stock, said fallout from the coronavirus is likely boosting Zoom’s stock. China extended the Lunar New Year celebration through Sunday in an attempt to keep the virus from spreading, but some provinces and companies are telling workers to stay home longer, which could mean increased work done on teleconferences.
In a Monday note, MacWilliams said “our buy-side contacts have noted increased investor interest around Zoom as a play on the coronavirus outbreak.”
“We believe investors are betting on paid user growth as a result of increased cloud video meeting usage, due to concerns around physically meeting due to the coronavirus,” he said. “If this is the cause for the move in shares today, this increase seems extended to us, as China does not represent a significant business for Zoom (though 80% of their engineering team resides there).”
EMJ Capital Ltd. founder Eric Jackson said in a tweet that China downloads of the app have jumped recently. Jackson, who said he is long on Zoom, told MarketWatch that he could not provide the source of his data.
Stephens analyst Ryan MacWilliams, who has an overweight rating and a $95 price target on the stock, said fallout from the coronavirus is likely boosting Zoom’s stock. China extended the Lunar New Year celebration through Sunday in an attempt to keep the virus from spreading, but some provinces and companies are telling workers to stay home longer, which could mean increased work done on teleconferences.
In a Monday note, MacWilliams said “our buy-side contacts have noted increased investor interest around Zoom as a play on the coronavirus outbreak.”
“We believe investors are betting on paid user growth as a result of increased cloud video meeting usage, due to concerns around physically meeting due to the coronavirus,” he said. “If this is the cause for the move in shares today, this increase seems extended to us, as China does not represent a significant business for Zoom (though 80% of their engineering team resides there).”
EMJ Capital Ltd. founder Eric Jackson said in a tweet that China downloads of the app have jumped recently. Jackson, who said he is long on Zoom, told MarketWatch that he could not provide the source of his data.
MacWilliams and another analyst, Piper Sandler’s James Fish, also noted that a trading strategy that some investors used amid Zoom’s rapid post-IPO rise could be facing difficulty. The trade called for a short on Zoom — about 6.6% of Zoom’s outstanding shares are shorted, according to FactSet data — and a long bet on cloud-communications company RingCentral Inc.
“Other contacts we spoke with noted today’s trading could be influenced through the continued unwinding of the short Zoom, long RingCentral trade,” MacWilliams said.
There was a thought that RingCentral could be developing a stand-alone video offering that could challenge Zoom, especially for RingCentral customers that use Zoom for videoconferencing. RingCentral and Avaya Holdings Corp. announced a video push Monday morning in a partnership that does not appear to be wholly owned by RingCentral.
“The solution will be featured at AvayaEngage 2020 this week, and initial expectations are that it is Avaya’s video solution and not a solution that RingCentral developed as a stand-alone video solution,” Fish wrote in a note.
Fish also noted that Microsoft Corp.’s Teams business-communications offering suffered an outage Monday morning.
William Blair analyst Bhavan Suri backed the view in a phone interview with MarketWatch. Suri told MarketWatch that investors are going long on Zoom because of “coronavirus — less travel, less face to face, more videoconferencing,” and that there is “possibly some short covering as well,” following the company announcing Monday that its earnings report will come March 4.
A request for comment from Zoom was still outstanding as of late Monday following the close of markets.
On Friday, stocks dropped after President Donald Trump declared coronavirus a U.S. public health emergency, ordering a 14-day quarantine for citizens returning from China’s Hubei province, and several airlines canceled flights to China.
Zoom went public back in April, and shares have advanced 144% since pricing at $36 for its IPO. In comparison, the S&P 500 index has risen 12% and the tech-heavy Nasdaq Composite Index has gained 16% in that time.
Of the 22 analysts who cover Zoom, seven have buy or overweight ratings, 13 have hold ratings, and two have sell ratings, with an average target price of $81.00, according to FactSet data.
source marketwatch
Industry: Unified Communications
Latest Jobs
-
- Security Architect | MoD - Security Cleared. OUTSIDE IR35 | Hampshire
- N/A
- Outside IR35
-
Security Architect | MOD | Security Cleared | Outside IR35 | Hampshire Commutable The successful candidate must be willing to undergo DV Clearance, ideally already holding active clearance. You will produce high and low level security architecture documentation, guiding and validating designs for systems deployed within sensitive environments. The role requires providing specialist security input into solution design, service transition and change initiatives, working closely with engineering, operations, client and third party stakeholders. You must have current hands on architectural experience, including VMware secure platform design and virtualisation architecture, alongside AWS expertise. This is an outside IR35 contract- 6 month rolling. Part of a longer term MoD project
-
- Active Directory | RBA engineer | UK Remote | SC Clearable
- United Kingdom
- N/A
-
Technical Active Directory (AD) and RBA specialist needed to play a key part in complex, enterprise scale Active Directory and access transformation programmes. You will work alongside senior team, helping reshape access models, modernise legacy directory structures and strengthen security posture across secure environments. This is hands on delivery within high impact projects where your work directly improves access control, compliance and operational resilience. Active UK Security Clearance required. This is a remote role with client travel. Implementation of Role Based Access Control across large AD estates Restructuring complex permission models, security groups and delegated access Supporting domain controller upgrades and core directory improvements Applying security hardening standards and remediating audit findings Enhancing authentication, policy and access governance frameworks Troubleshooting and resolving technical AD challenges within live environments Producing robust technical documentation and identifying project risks You must have the following technical experience Enterprise Active Directory administration Role Based Access and permission remediation OU design and governance Group Policy management Security group delegation models DNS and DHCP services Kerberos authentication / NTLM PowerShell scripting and automation Azure AD | Entra ID Hybrid identity environments Identity Governance PAM
-
- Identity and Access Management Consultant (Saviynt & Microsoft Entra) | UK
- United Kingdom
- N/A
-
Role summary Technical IAM consultant delivering identity governance and cloud identity solutions to enterprise clients. What you will do Implement / Configure / Deploy Saviynt IGA / Microsoft Entra solutions: Lead technical workshops, gather requirements and translate into solution designs. Troubleshoot complex issues, support testing and deployments. Produce technical artefacts and configuration guides. Key skills Hands-on Saviynt IGA experience (workflow, connectors, access governance). Strong practical knowledge of Microsoft Entra ID / Azure AD identity and access controls. Understanding of identity protocols (SAML, OAuth, OpenID Connect) and hybrid identity. Experience with APIs / REST for integrations and automation. What we are looking for Proven delivery experience in IAM / IGA projects, preferably in consulting. Confident communicator with client-facing delivery exposure.
-
- Cyber Security Technical Presales Consultant | UK | Managed Services SOC / Pentesting etc
- England
- N/A
-
Experienced Technical Pre Sales Cybersecurity Consultant to support organisations across the UK. This role focuses on delivering advisory, high level solution design, and security uplift services that improve security outcomes, address operational challenges, and enable informed technology decisions within complex and regulated environments. The position blends technical pre sales expertise with a consultative approach, working closely with technical, operational, and commercial stakeholders to shape effective and scalable cybersecurity solutions such as Managed Services SOC / Pentesting etc The individual must be able to achieve UK Security Clearance. Key Responsibilities Provide technical pre sales support across cybersecurity solutions and services for organisations operating across multiple industry sectors Engage stakeholders to understand security challenges, risks, compliance requirements, and operational pain points Deliver advisory guidance and recommendations to strengthen security posture and organisational resilience Translate customer requirements into clear, outcome focused technical and commercial solution designs Act as a trusted technical advisor throughout the sales and early delivery lifecycle Produce clear technical documentation, recommendations, and customer facing materials suitable for regulated environments Collaborate closely with sales, delivery, and technical teams to align solutions with customer needs Experience and Skills Proven experience in technical pre sales or cybersecurity consultancy Experience working across multiple industries, ideally within regulated or complex environments Broad knowledge of cybersecurity technologies, managed services, and risk based approaches Strong communication skills with the ability to engage both technical and non technical stakeholders Confident operating in a client facing, consultative role UK based role with remote working Occasional travel for customer engagement as required