(Reuters) - Shares of Zoom (ZM.O) fell 8% on Monday, adding to their sharp declines in the past few days, as the video conferencing app battles privacy concerns and increased competition from deep-pocketed rivals.
The stock had surged to a record high in March as demand for the app skyrocketed with millions of people around the world using it for everything from school lessons to business meetings amid lockdowns imposed to slow the spread of the coronavirus.
But multiple reports last week that questioned the company’s data privacy practices have spooked investors, erasing over a third of the company’s market value from its record high.
The stock was last down 7.9% at $118.05 on Monday, among the worst performing stocks in the Nasdaq.
Brokerage Credit Suisse downgraded Zoom Video Communications Inc’s stock to “underperform” from “neutral”. Analysts on average rate the stock “hold”, according to Refinitiv data.