Zoom shares drop after Google banned app from employee devices: Report

CNBC's Deirdre Bosa reports that shares of Zoom fell after a Buzzfeed report that Google has banned employees from using the popular videoconferencing tool on their phones.

Zoom has been hit with a class-action lawsuit by one of its shareholders, who alleged the company failed to disclose issues with its video conferencing platform’s privacy and security.

According to reports, the suit filed by investor Michael Drieu in the U.S. District Court for the Northern District of California claimed that concerns over Zoom’s security and privacy flaws have hit its stock price. Zoom shares had fallen in recent session, but are still up 67% since the start of the year.

Investors have largely viewed the company as a bellwether of the surging demand for enterprise software amid the coronavirus pandemic. Slack and Microsoft’s Teams app have both reported wild customer growth as lockdown measures around the world have forced many employees to work from home.

Despite the news of legal action, Zoom stock was up more than 4% on Wednesday morning. Zoom was not immediately available for comment when contacted by CNBC on Wednesday morning.

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[jacksonburch]

Google wants employees to all use tools made by the company. This shouldn’t surprise people.

[fakemichaeljordan]

Google trying to take over the market and monopolize everything SMH. #BreakItUp

[carbonchain]

I see alot of misinformation in comments about zoom.
Its not a Chinese company, its a US company with a CEO that is ethnically chinese. The software itself was developed in the US and it has servers all around the world including China.
Like all new applications that just took off in popularity there will be technical issues (including security) to address. How many security issues did Microsoft or facebook have over the years?