Shares of Zoom Video Communications (NASDAQ:ZM) rose today after investors reversed course and stopped selling shares of the video tech company. Investors dumped Zoom stock over the past few trading days as they began leaving tech stocks, but today's jump indicates that the recent sell-off has stopped.
Zoom's stock popped by as much as 11.5% during this morning's trading and was up by 8.9% as of 12:06 p.m. EDT.
There's no company-specific news that's driving up Zoom's stock today. Instead, it appears that some investors are rushing back after they began selling technology stocks, including Zoom's, last week. Zoom's stock fell 23% between Sept. 2 and Sept. 8.
Zoom's stock has been on a tear this year as investors have looked to the company as a bright spot during the coronavirus pandemic. Zoom's video service went from being used for professional video calls to becoming the de facto choice for many people to keep in touch with friends and family.
That increase in usage caused investors to rush to Zoom's stock, driving the company's share price up 463% this year.
The broader market is a bit volatile right now as investors try to process information about the economic recession, COVID-19, and the upcoming presidential election. Additionally, a huge run-up of tech stock purchases over the past few months means that some investors could end up pulling back from their investments yet again, just as they have over the past few days, which could add more uncertainty for Zoom stock in the short term.