Why Zoom Video Stock Dropped Today
Shares of Zoom Video (NASDAQ: ZM) have dropped today, down by 7% as of 12:22 p.m. EDT, as investors took profits off the table following a massive surge this week. The videoconferencing specialist led a broad rally in enterprise software stocks yesterday after announcing blowout second-quarter results on Monday.
The stock soared 41% on Tuesday after the video-calling tech company reported an astronomical 355% increase in revenue in the fiscal second quarter. Zoom has been among the biggest inadvertent beneficiaries of the COVID-19 pandemic, which has changed how people connect both personally and professionally. Considering the sheer magnitude of the stock's 520% gain year to date, it's not surprising that some investors are selling to lock in those profits.
Image source: Zoom Video.
Source Fool.com
