Morgan Stanley downgrades Zoom stock

Yahoo Finance Live’s Brian Sozzi discusses Morgan Stanley downgrading Zoom to Equal Weight.

Video Transcript

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BRIAN SOZZI: Before I head to break, let's take a look at this Morgan Stanley downgrade on shares of Zoom. Analyst Meta Marshall says, the team is stepping to the sidelines on Zoom as there are no near-term catalysts for the stock.

The online business isn't expected to stabilize until early next year, suggesting an overhang is likely to stay over the stock for the next six months. Marshall's price target on Zoom goes to $90 from $130. Zoom shares are down about 61% so far on the year.

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