Zoom Video Communications Inc (NASDAQ:ZM) Turns Volatile Amid multiple News
The coronavirus pandemic has forced hundreds of thousands of people from all across the world to work from home, and in order to do it effectively, video communication applications have become essential. One of the video communication applications that have gained immense traction in the past weeks is Zoom Video Communications Inc (NASDAQ:ZM).
Stock Movement
In recent days, privacy issues with the application were exposed in a big way, and that has resulted in a bit of a setback. However, the stock has moved from $68 a share in early 2020 to $133 a share at this point, and earlier on in March; it had hit $160 a share.
The company had created a product that allowed users to set up an account and initiate virtual meetings instantly. However, this feature actually backfired as hackers and uninvited persons started joining meetings. However, that is not all. The company’s data protection policies have also come into focus, and that has resulted in attention from the United States Congress. These issues have resulted in a drop in popularity for Zoom, and it remains to be seen how long the stock can sustain its gains.
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However, the company is doing everything in its power to win back the trust of customers. The company has frozen the entire cache of new features and directed the entire engineering team to work on fixing these issues. The company’s CEO admitted as well that it moved too quickly and made errors. Zoom has provided features in order to make calls more secure. Most users went for the default setting, and that used resulted in the thousands of security breaches. A new software patch has also been launched, and new fixes are going to be completed over the coming 90 days. The company would also need to boost its customer service arm so that it can meet the needs of customers. While there is volatility in the Zoom stock, investors believe that it is a stock that could prove to be a long term winner.
Tesla Inc (NASDAQ:TSLA) Stock Recovers After The Covid-19 Sell-Off
Tesla Inc (NASDAQ:TSLA) stock had been on a tearing run from back in May of 2019 up until the coronavirus pandemic sank stocks in March this year. The stock had zoomed from $200 per share to $900 per share during that run.
What Are Analysts Saying?
However, the coronavirus pandemic has hit the stock pretty hard, and in a few weeks, the Tesla stock has lost much of the gains that it had made over the past months. In such a situation, it is perhaps time for investors to take stock of the situation and figure out whether the stock is going to rebound soon.
One thing that investors need to keep in mind is the fact that Tesla is a stock that divides opinions. While there are bullish analysts who state that this could be a buying opportunity, bearish analysts have cited the weakness in the automobile industry and lowered price targets.
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Alexander Potter of Piper Sandler set the price target for Tesla at $800 a share and implied that the current valuation of the stock is not justified. Bearish analysts have set the price target to as low as $300 a share. It should be noted that the sales of light vehicles are expected to crash by 30% to 40% in March.
On the other hand, an analyst at Benchmark named Michael Ward pointed out that the traffic in showrooms crashed by 25% to 50% in the first week of March. Over the past days, there has been no traffic at the showrooms due to the lockdowns.
That being said, it needs to be pointed out that there has been no bad news specific to Tesla. The company had to halt most of its activities at the Fremont facility. Later on, it was reported that two of its employees had tested positive for coronavirus. The stock is going to continue to divide opinions, but experts believe that in 2020, the bears might just have the edge.
Seafarer Exploration (OTCMKTS:SFRX) Making Moves In The Right Direction
One of the stocks that have made significant momentum this week is that of Seafarer Exploration Corp (OTCMKTS:SFRX) after it emerged that the company has managed to hit highly important milestones. A milestone that has created a lot of optimism is that Seafarer has now become a defense contractor for the United States.
Additionally, the company has also started generating revenues from its blockchain encryption business. In addition to that, the company has also managed to grow its revenues considerably, thanks to its first government contract. That has been another reason why investor confidence is quite high with regards to the Seafarer stock.
Key Operations
The company’s business is quite unique. Seafarer is engaged in archaeological research and is also involved in recovering as well as conserving old shipwrecks. However, that is not all. Seafarer is an expert in researching the archives of a ship and also possesses the skills to translate historical documents that are available in repositories across the globe.
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The Chief Technology Officer of the company, Dr. Michael Torres, stated that Seafarer’s partnership with Advanced Autonomous Radar Interrogation Technology has proven to be a major boost. Due to that partnership, the company now has the ability to detect noble metals, and that can be deployed in a wide variety of projects.
However, the main reason behind the significant rally in the Seafarer stock is ultimately rooted in the company’s rising revenue, and hence, it is worthwhile for investors to add this stock to their watch lists. The Chief Executive Officer of the company Kyle Kennedy also stated that Seafarer has changed its business plan and aims considerably in recent times. That could also be a major reason behind the remarkable turnaround in the company’s fortunes. The company wants to expand into new industries, and if it succeeds, then it could have a hugely positive effect on the stock price. The underlying fundamentals are strong, and it is likely that the uptick might continue.
KushCo Holdings (OTC:KSHB) reports Quarterly results: What Next?
One of the cannabis companies which had a remarkably bad time in 2019 was KushCo Holdings (OTC:KSHB), and it seems that the company’s troubles are not over yet. Health-related panic about vaping had hit KushCo pretty hard last year, and this past Wednesday, the company announced its fiscal second-quarter results following the closure of markets.
The company is also facing troubles from the mayhem unleashed by the coronavirus pandemic. Here is a look at some of the highlights from the company’s fiscal second-quarter results for 2020.
Earnings Review
In the second quarter, the company’s net revenues came in at $30.14 million, which reflects a year on year fall of 14%. While that piled on the misery for KushCo, it should be noted that the figure scraped past analysts’ estimates of $30.13 million. The losses widened significantly to $44.4 million for the quarter, which worked out to losses $0.40 a share. In the year-ago period, the company’s net losses stood at $8.9 million, which worked out to losses of $0.10 per share, and that reflects a major rise in the company’s losses. The decline in the vaping business has been cited as one of the key reasons behind the loss.
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In November last year, the company had launched its hemp trading business, but until now, it has not been able to boost its earnings. KushCo also has a considerable presence in California, and despite the state declaring cannabis as essential business, its sales took a hit as more people ordered the product. One of the brighter points from the earnings report was that the company managed to boost its sales in some of its markets. Sales rose in Michigan, Massachusetts, Canada, and Illinois. The company’s Chief Executive Officer stated that investors could accept more stable revenues in the coming quarters and went on to say that KushCo could also produce positive EBITDA earnings soon.
Inovio Pharmaceuticals Inc (NASDAQ:INO) More Than Doubled in 2020: What to do Now?
The coronavirus pandemic may have led to a historic collapse in the stock market, but from certain stocks, the situation has been different. Companies involved in developing coronavirus related products have experienced significant bumps in their stock prices, and one such company is Inovio Pharmaceuticals Inc (NASDAQ:INO).
INO Stock is Up 120% This Year
The stock has recorded gains of as much as 120% over the course of the year so far after it emerged that Inovio is working on developing a DNA based coronavirus vaccine. The company has also gone into a partnership with Ology Bioservices to develop the vaccine, and Phase 1 testing for the same is expected to commence later on in April.
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However, anyone who is interested in investing in the Inovio stock needs to keep certain things in mind. First and foremost, there are other companies who are also working on developing vaccines for the coronavirus. Hence, it is a race among many companies, and the ones who get there first are going to see significant upside. On the other hand, the rationale behind an investment in Inovio is binary in nature. Either the company will be successful or if it will fail. However, in the second instance, the price of the stock could go to the levels it was trading at prior to the coronavirus crisis.
In its initial rally, the stock had soared from $4 to $20 within a matter of days, but since then, it has grown steadily, and in fact, it has recorded declines of 50% since hitting its highs in March. While it has become abundantly clear that the DNA based coronavirus vaccine could be massive for Inovio, it should be noted that the company has other products in the pipeline as well. One of the more interesting products in its pipeline is the VGX 3100, which is immunotherapy for those suffering from anal dysplasia. Investors could watch the proceedings closely before coming to a decision.
Gold Stocks Soar On Safe-Haven Buying
The coronavirus pandemic has proven to be a hammer blow to the global economy and also for the financial markets. In addition to that, the latest jobs report from the United States has revealed that as many as 6.6 million Americans had applied for unemployment claims last week.
What to Watch
That is an alarming number, and in such a situation, it is bound to force investors to look to invest in safe-haven assets like gold. That has, in turn, helped in the recent surge in gold, silver, and precious metal stocks. Some of the stocks that recorded significant gains last week include Coeur Mining, Hecla Mining, Pan American Silver, and First Majestic Silver.
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Gold has enjoyed a remarkable rally in recent weeks, and as of Thursday last week, it was trading at $1,680 an ounce. That is close to the record highs it had hit back in 2013. Silver, on the other hand, climbed more steadily and was trading at $15 an ounce, up from $12 an ounce in March. While it is true that the higher price of gold is expected to be a major boost for gold producers, it should also be noted that the coronavirus pandemic has forced many companies to suspend operations temporarily.
Hence, it might not be right to assume that higher gold prices are going to lead to higher gains for gold mining companies. While the shutdowns at many mines are a factor, it should also be kept in mind that the current crisis has affected economies all over the world. It is still unknown whether the lockdowns are going to be extended in many countries.
Hence, it could lead to an indefinite period of disruption to the gold mining process. In this sort of situation, investors need to analyze the different gold producing companies on merit and weight those companies against the existing situation in the global economy, before making a decision.
3 Healthcare Stocks Working Aggressively on Coronavirus Vaccine
The coronavirus pandemic has been not only resulted in an economic crisis on a global level, but it has also sent the markets into a tailspin. Almost all stocks across the board have seen deep declines in recent days; however, there are some stocks in the healthcare sector that have shown promise. There are some healthcare stocks that are involved in developing products meant for tackling the coronavirus, and it could be worthwhile for investors to keep an eye on these stocks. Here is a closer look at three healthcare stocks fighting the coronavirus that could be tracked at this point.
Kiniksa Pharmaceuticals Ltd. (KNSA)
One of the healthcare stocks that could be tracked at this point is that of Kiniksa Pharmaceuticals Ltd. (KNSA). Recently, it emerged that the company’s anti-GM-CSFRα antibody product named mavrilimumab was used to treat six patients suffering from coronavirus as part of a study. The study in question was conducted at the San Raffaele University in Italy.
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David Nierengartne, who is an analyst at Wedbush that the symptoms tackled by the product, is similar to the ones that are consistent with coronavirus, and the firm also gave the stock an outperform rating. Wedbush set the target price for the Kiniksa stock at $30 in 12 months and represents an upside of as much as 68%. In addition to that, it should be noted that there is a total of 3 buy recommendations for the stock, and that is a 100% strike rate for Kiniska.
CytoDyn, Inc. (CYDY)
The other healthcare stock that could be worth adding to the watch list at this point in time is that of CytoDyn, Inc. (CYDY). The company is involved in developing a product named Leronlimab, which can be used to treat a wide range of ailments like metastatic cancer, multiple sclerosis, and Parkinson’s disease, among others. However, there is the possibility of the product being used to treat coronavirus as well, and hence, the CytoDyn stock has jumped by as much as 179% this year so far.
Yi Chen, who is an analyst at Wainwright, stated that due to the rising number of cases in New York and elsewhere in the United States, there is a possibility of Leronlimab getting fast track approval for the FDA to treat coronavirus. The probability of getting approval has been set at 35%. Chen gave a buy rating and also upped the target price to $3 from $1.5.
BioNTech SE (BNTX)
Last but not least, investors could also consider having a look at the BioNTech SE (BNTX) stock. The company, which is involved in creating customized cancer treatments, recently launched a program to create a coronavirus vaccine. That has resulted in a rally of 56% in the BioNTech stock in 2020 so far.
Analyst Arlinda Lee of Canaccord stated that the company’s tie-up with China’s Fosun and Pfizer to develop the vaccine is a significant development. Analysts seem to be divided regarding their position on the stock. Three analysts have given a hold rating, while three others have placed a buy rating on the BioNTech stock. The target price average of $38.40 actually represents a decline of 27%.
Amazon.com Inc. (NASDAQ:AMZN) Demonstrating Its Strength During Coronavirus Crisis
During this coronavirus pandemic, Amazon.com Inc. (NASDAQ:AMZN) has done well as the number of home deliveries grew with the stay at home to combat the spread of the virus. Although the company has experienced challenges like running out of hand sanitizer, toilet paper, and other products it has nevertheless proved its strength during this crisis. Amazon making the best out of the COVID-19 crisis.
The performance is welcome for its shareholders in the long run and it is due to the strengths the company has created over the years. For instance, faster or two-day delivery is the expectation of most people and thus the struggle experienced by the company for some orders is understandable.
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During this crisis, nobody foresaw a scenario where cleaning suppliers, food items and toilet paper could run out. But still, the e-commerce retailer did fairly well. Despite listing long delivery times for some orders most were delivered ahead of time. This has been a learning moment for the company which will help it improve operations.
Amazon attracting more online shoppersThe coronavirus situation has also helped the company acquire more customers with most people obeying the shelter-in-place order turning to it for deliveries. These customers gave the company their cards with many buying the Amazon Prime subscription. Even after the pandemic, it is likely that these people will remain and although they won’t be ordering often they might as well do sometimes.
More people are ordering from Amazon because they have realized how effortless it can be to get your stuff shipped to your place. For instance, things like toilet paper will take most of your space when shopping so they should be delivered at your doorstep. Similarly, people may be learning that Amazon stocks some products that they didn’t expect it to. The coronavirus pandemic will help Amazon emerge as a better e-commerce leader than before. Its infrastructure gives it an advantage over competitors in the market. Even when normalcy resumes most people will definitely prefer online shopping to save them the hassle of going to pick grocery and other stuff.