Shares of Zoom Video Communications (ZM -2.25%), a video conferencing and collaboration software platform, were hit hard on Friday. The stock fell as much as 14.2% and finished the trading day down 7.5%.
The tech stock's decline likely reflects some Zoom investors taking profits after a sharp run-up during the week, even as the market fell sharply.
From the beginning of the week to the end of the trading day on Thursday, shares of Zoom Video rose nearly 12%, as investors flocked to the stock in a bet that travel restrictions would be a boon for the videoconferencing company.
Zoom's strong performance throughout the week added to a huge run-up in recent months. Even when including Friday's 7.5% decline, shares are up 41% over the last three months.
Investors will soon get to see if Zoom's underlying business can live up to the market's excitement for the stock. The company reports fourth-quarter earnings after market close on March 4.
In Q3, Zoom's third quarter, revenue rose 85% year over year to $166.6 million. Analysts, on average, expect fourth-quarter revenue of $177 million.