Zoom spikes as latest New York City school closure means more remote learning
Zoom is up 490% year-to-date as of Tuesday's close, but recent news of a positive COVID-19 vaccine candidate led to a selloff.
Al Seib / Los Angeles Times / Getty Images
- Zoom Video Communications reversed earlier losses and surged as much as 5.5% on Wednesday afternoon following the announced closure of New York City public schools, which will start Thursday.
- NYC public schools will transition to remote learning because a surge in COVID-19 cases pushed the 7-day positivity rate above the 3% threshold.
- Zoom has been a prime beneficiary of the COVID-19 related lockdowns that swept across the country throughout 2020.
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Zoom Video Communications reversed its 3% loss on Wednesday and surged as much as 5.5% after the New York City public school system said it will close and transition to remote learning.
The move by ame after a surge in daily COVID-19 cases pushed the seven-day positivity rate above the 3% threshold set by NYC mayor Bill DeBlasio.
DeBlasio tweeted on Wednesday: "New York City has reached the 3% testing positivity 7-day average threshold. Unfortunately, this means public school buildings will be closed as of tomorrow, Thursday Nov. 19, out an abundance of caution."
DeBlasio added: "We must fight back the second wave of COVID-19."
Zoom has been a prime beneficiary of the COVID-19 related lockdowns that swept across the country throughout 2020 as businesses and schools alike transitioned to the video-chat platform.
Shares of Zoom were up 490% year-to-date as of Tuesday's close, but recent news of a positive COVID-19 vaccine candidate from Pfizer and Moderna led to a 20% sell-off in the stock.
Now, investors in Zoom likely have to weigh the prospects of a renewed wave of COVID-19 related lockdowns with the imminent roll-out of successful vaccines.
Markets Insider