Zoom Slips After Record High and Abbott Reports Earnings
The video communications company’s stock had one of its worst days of the year yesterday following a new record high on Monday. The stock fell more than 5% as investors took their profits to capitalize on Zoom’s incredible year. The company is up nearly 800% in 2020.
Investors have been excited about Zoom for its incredible brand and usage since the start of the pandemic, and recently new features and improvements to usability have helped maintain the momentum. Still, as a company that is trading at such a significant multiple of its 2021 sales estimates, some uncertainty remains over whether it is truly worth the big price.
The healthcare company will report earnings today and analysts are predicting a great quarter. The company has been a leader in developing coronavirus antigen and antibody tests and has signed numerous deals with governments to provide testing capabilities. One thing that has impressed investors is Abbott’s business strategy throughout the pandemic. They have been able to capitalize on the growing demand for testing while also finding a specific niche in the market. The company is a leader in providing rapid testing and testing that doesn’t need a lab. This effort has investors excited that Q3 was a success.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.