Jim Cramer Says Zoom Can 'Absolutely' Get Past Security Controversy
on April 6, Zoom was banned from New York City schools.
New York City Department of Education banned the video conferencing service over privacy concerns.
Department of Education Chancellor Richard Carranza announced that security and privacy issues were behind the department's decision to ban the platform "as soon as possible," according to a memo first reported by Chalkbeat.
And, on April 9, U.S. senators have been advised not to use the platform. The Senate's sergeant at arms has warned members of the legislative chamber, urging them not to use the video conferencing service, the Financial Times reports, citing three people briefed on the advice and one who had seen it directly.
However, despite the concerns around privacy, Jim Cramer still thinks that Zoom can shrug off the negative headlines off.
Analysts at Cantor Fitzgerald, which initiated Zoom as 'overweight' seem to agree that Zoom is a stay at home winner.
"We believe the current Covid-19 environment presents significant upside potential not currently assumed in the stock," analyst Drew Kootman said in a note to clients. "Zoom provides a superior communication platform in a time where video and connectivity is becoming more important for all industries and business sizes."
Kootman said he expected "the virus to provide upside to estimates and for the platform and its products to drive increased market penetration and future cross-selling opportunities."
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