Zoom Has Gotten Ahead of Itself
The COVID-19 pandemic has created insane surges in usage for a wide range of communications platforms. Zoom Video Communications (NASDAQ: ZM) has emerged as a poster child for videoconferencing as companies shift many of their employees to working from home. Soaring usage of the platform has uncovered critical vulnerabilities in privacy and security, which the company is now scrambling to address.
In a blog post earlier this month, CEO Eric Yuan noted that Zoom hit 200 million daily meeting participants in March -- or 20 times the prior maximum daily meeting participants of just 10 million. Meanwhile, investors have been flocking to the stock, sending shares up over 140% year to date at the peak before starting to pull back.
Image source: Zoom Video.
Source Fool.com
