Zoom Video News: ZM Stock Falters 7% on Security Worries

Zoom Video (NASDAQ:ZM) news for Monday includes security concerns dropping ZM stock.

Zoom Video News: ZM Stock Falters 7% on Security Worries

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The security worries behind the Zoom Video news comes after information for accounts was posted to the dark web. These postings went up on April 1 and included information for 352 accounts.

It’s worth pointing out that many of these accounts were for personal use. However, there was at least one business account and a few belonging to educational facilities. It doesn’t appear that the hacker is looking to make money off the information, but that doesn’t mean other won’t.

Zoom Video is aware of the hacked accounts showing up on the dark web but hasn’t provided finer details about what it plans to do about it. Instead, it simply says it is looking into the matter and that it will work to improve its security, reports Yahoo Finance.

Sen. Michael Bennet (D-Colo.) sent a letter to Zoom Video CEO Eric Yuan complaining about the hacks. Here’s a snippet of it from The Hill.

“These revelations have forced technical and policy responses from the company, from strengthening password protection to expanding the ‘waiting room’ feature to block unauthorized participants. In case after case, these issues consistently stem from Zoom’s deliberate decision to emphasize ease of use over user privacy and safety.”

While no company wants to be the target of security concerns, this doesn’t mean that the Zoom Video news is a sign of a larger problem. The company is currently seeing as many as 200 million daily users, which makes 352 accounts seem incredibly minute.

ZM stock was down 7.37% as of Monday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/04/zoom-video-news-security-worries-drop-zm-stock/.

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