Stock Alert: Zoom Video Down 12% As Privacy Concerns Continue To Impact

(RTTNews) - Shares of Zoom Video Communications (ZM) are losing about 12% on Monday morning as the video conferencing software company faces investors' brunt due to lack of privacy.

Last week, the company came under scrutiny after multiple reports suggested that the video conferencing software company is illegally disclosing personal information, without proper notice, to third parties, including Facebook.

The platform has also been criticized for routing video calls through China, as well as offering no end-to-end encryption of calls despite saying it did so.

Yuan publicly apologized to users and investors, saying, "We recognize that we have fallen short of the community's - and our own - privacy and security expectations."

The San Jose, California-based company's services include video conferencing, online meetings, webinars, chat, and mobile collaboration.

As the coronavirus spreads across the U.S., more companies are choosing online meetings and remote conferences over face-to-face ones, benefiting Zoom immensely.

Zoom's app topped the free charts in the ioS App Store and Google Play Store in the U.S. earlier this week. The company's daily users ballooned to more than 200 million in March from 10 million last year, Chief Executive Officer Eric Yuan said last week.

ZM is currently trading at $113.38, down $14.82 or 11.56%, on the Nasdaq.