What happened
Shares of Zoom Video Communications (ZM -1.61%) popped today, likely following investors' positive sentiment toward technology stocks and news that a coronavirus variant is spreading.
The video collaboration company's stock was up by as much as 5.6% today and had gained 4.4% as of 4:15 p.m. EDT.
So what
Investors have become generally bullish on technology stocks again following a massive sell-off earlier this year. Zoom's stock has largely followed that trend, with shares skyrocketing 396% in 2020 before pulling back toward the end of the year and into 2021.
Image source: Getty Images.
But Zoom's stock is back on the rise and has gained 19% over the past month. Investors may be pushing the company's share price higher as they process more information about the COVID-19 Delta variant.
Some investors may be thinking that this particular variation of COVID-19 may cause some places around the world to shut back down again, which would increase demand for Zoom's video services.
For example, Sydney, Australia entered a temporary lockdown recently, and only 4% of the country is fully vaccinated.
Investors may also be continuing to push up the company's share price after its 5% jump on Friday, after RBC Capital analyst Rishi Jaluria named Zoom as his top stock pick.
Now what
With Zoom's stock spiking recently, it's clear that investors are once again positive about the company's future. And with some areas around the world still at the beginning stages of a COVID-19 vaccine rollout, it's possible that demand for Zoom's video services could continue for quite some time.
