The 2020 pandemic hit many companies hard, while other companies took it as a chance to grow, seemingly unaffected by the state of the world around them. NVIDIA (NASDAQ:NVDA) came out as one of those thriving businesses and achieved gains of 122% in 2020. The company’s graphics processing units (GPUs) were present and needed for trends that accelerated exponentially due to the pandemic, boost...
On Tuesday, the stock value from Zoom Video Communications (NASDAQ: ZM) was up today. Let us dive a bit deeper into why this happened and what to look out for.
Why the sudden jump? What does this mean?
The tech stock was up 6.1% in early Tuesday afternoon.
The rise in the stock came after the Food and Drug Administration and the U.S. Centers for Disease Control and Prevention were advising that all use of the Johnson & Johnson vaccine was to be put on hold.
Both agencies mentioned that they were reviewing various instances where severe blood clotting happened after six people took the Johnson & Johnson vaccine. It is important to note that nearly 7 million doses have been administered of that vaccine so far.
While the agencies stated that these recommendations were due to caution rather than total retraction of the vaccine, it still caused an uproar in the investing world.
When the pandemic hit the U.S. in 2020, many investors switched their focus to tech companies that could take advantage of social distancing and lockdown regulations. Zoom was one of them.
However, as vaccine distribution and manufacturing began to increase, investors began turning towards other sectors as the economy started to stabilize.
After the FDA and CDC announcement of the Johnson & Johnson case earlier today, many investors began returning and shifting their focus back to tech stocks. This is probably one reason why Zoom is on the rise today, as the anticipated rise of the U.S. economy became a little more unclear.
Technology stocks have had their ups and downs in 2021, and Zoom’s price jump appears to be something like that. Long-term investors of the stock must consider that the tech sector is still highly volatile, as everyone is still figuring out how the U.S. economy will eventually emerge from the pandemic.