Shares of Zoom Video Communications (NASDAQ:ZM) took a hit on Thursday, falling more than 6% as of 1:50 p.m. EDT.
The decline likely reflects the stock taking a breather after a wild run-up this year. Some other growth stocks that have crushed the market in 2020, including Fastly, Shopify, and Peloton, also fell a few percentage points or more on Thursday.
Zoom Video stock's decline adds to yesterday's pullback, bringing shares' total loss over the last two trading days to about 10%. Notably, however, the stock is still up more than 600% year to date.
Zoom has been perfectly positioned during the COVID-19 pandemic to benefit from more people working from home. One of the primary work-from-home trends has been a rise in streaming-video collaboration.
Some investors, however, may be concerned that the stock's valuation has gotten ahead of itself.
Zoom's fiscal second-quarter results blew away expectations, with revenue surging 355% year over year. Looking to fiscal Q3, management indicated that this strong momentum would continue. The company guided for third-quarter revenue of $685 million to $690 million, up from $167 million in the year-ago period.