Shares of Zoom Video Communications (NASDAQ:ZM) are rising today as cases of COVID-19 continue to rise and a vaccine rollout appears to be taking longer than expected in the U.S.
The tech stock was up by as much as 7.6% and had gained 5.4% as of 11:58 a.m. EST.
Technology stocks were a haven in 2020 for investors as lockdowns and social distancing forced many people to rely on technology for work and social activities. Perhaps no company benefited more from these social restrictions than Zoom, whose video services have become the preferred tool for video calls.
The coronavirus continues to spread quickly across the U.S. and distribution of several COVID-19 vaccines appears to be taking longer than some had expected. If people in the U.S. aren't able to get the vaccines quickly, many businesses will continue to be shuttered or scaled back, which will exacerbate the already-shaky economic recovery.
All of this matters for Zoom's business because the longer social distancing and lockdowns are the norm, the more people will rely on the company's video service to meet with friends and family and conduct business.
With today's mild share price jump, Zoom's stock has gained 428% over the past 12 months.
There's still a lot of uncertainty surrounding the U.S. economic recovery, which means that Zoom's stock could continue to respond to coronavirus and vaccine-related news. Zoom investors should consider the long-term prospects of the company and try not to react to the daily stream of news.