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).
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.