Why Zoom Stock Got Trounced by the Market Today
These days, investors need good and convincing reasons to invest in the tech sector. On Thursday, with teleconferencing bellwether Zoom Video Communications (NASDAQ: ZM), they didn't get any. A new and rather lukewarm analyst take on the company didn't do its stock any favors, and its price slid by over 4% on the day.
Before market open, Wedbush's Taz Koujalgi initiated coverage on Zoom. Don't expect to see him loading up on the stock anytime soon, though, as his recommendation on the shares is neutral, at a price target of $80 per share.
His caution is based on potential competition and pricing pressure amid concerns that certain competitors, such as tech behemoth Microsoft might be planning to bundle teleconferencing services into their existing products.
Source Fool.com
