What happened
Shares of Zoom Video Communications (ZM +0.30%) rose again today, as investors continued to look to the tech stock as a go-to investment during the pandemic.
Zoom's stock rose by as much as 7.3% today and was up 7.1% as of 3:01 p.m. EDT.
So what
Investors have been drawn toward technology stocks during the coronavirus pandemic as they look for fast-growing companies that are providing vital technologies during lockdowns and expanded work-from-home policies. Zoom's stock has skyrocketed as a result and is up 633% since the beginning of this year.
Image source: Getty Images.
Today's share price jump appears to follow the same trend, as some investors fear that the fall season could increase the spread of the virus in the U.S. and abroad. Additional restrictions could spur even more use of Zoom's video service and investors appear to be banking on that idea.
Now what
While Zoom's stock price jump today didn't have anything to do with company-specific news, investors aren't wrong to be optimistic about this company. Zoom's revenue increased by 355% and the number of customers contributing more than $100,000 in the trailing 12 months jumped 112% in the second quarter (reported on Aug. 31). And with no end in sight to the pandemic, Zoom's business is likely to continue growing.
