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- Zoom Video Communications reversed previous losses, rising as much as 5.5% on Wednesday afternoon following the announced New York City public school closure that will begin Thursday.
- NYC public schools will switch to distance learning as a surge in COVID-19 cases pushed the 7-day positivity rate above the 3% threshold.
- Zoom has been one of the main beneficiaries of the COVID-19 lockdowns that spread across the country in 2020.
- You can find more stories on the Business Insider homepage.
Zoom Video Communications reversed its 3% loss and rose 5.5% on Wednesday after New York City’s public school system announced it would close and move to distance learning.
Ame’s move after a spike in daily COVID-19 cases resulted in the 7-day positivity rate rising above the 3% threshold set by NYC Mayor Bill DeBlasio.
DeBlasio tweeted Wednesday, “New York City has hit the 7-day average threshold of 3%. Unfortunately, this means public school buildings will be closed out of caution starting tomorrow, Thursday, November 19th.”
DeBlasio added, “We need to fight the second wave of COVID-19.”
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Zoom was one of the main beneficiaries of the COVID-19 lockdowns across the country over the course of 2020 as businesses and schools alike switched to the video chat platform.
Zoom’s shares were up 490% year-to-date as of Tuesday’s close of trading. However, recent news of a positive COVID-19 vaccine candidate from Pfizer and Moderna resulted in a 20% sell-off in the stock.
Now, investors in Zoom are likely to have to weigh the prospect of another wave of COVID-19-related lockdowns with the imminent launch of successful vaccines.
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