Shares of Zoom, the videoconference provider, are surging as the number of coronavirus cases continues to rise across the globe. Zoom’s stock price was up 5.18% to $107 per share before the closing bell.
It’s no wonder more people are bullish on Zoom right now: business travel has been severely curtailed all over the world. The massive Barcelona-based trade show Mobile World Congress was cancelled two weeks ago. According to a MarketWatch report, IBM and AT&T both declined to attend one of the largest security conferences in San Francisco. Facebook called off a marketing event in San Francisco that was set to take place in March.
Based on the most recent figures from the World Health Organization (WHO), there have been 79,407 cases of COVID-19 reported in 32 countries and 2,622 deaths. The number of confirmed cases in the U.S. is now up to 53.
“Teleconferencing is going to become even more popular as folks stay closer to home, making Zoom [stock] a winner despite its seemingly overvalued shares,” according to Motley Fool contributor Rick Munarriz. But it’s been quite a month for Zoom. Shares also rose 11% in early February, when its rival, Microsoft Teams, went down temporarily for failing to renew a security certificate.