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Data: FactSet; Chart: Axios Visuals

Video conferencing giant Zoom's stock has taken flight in recent weeks, up 121% this year while the S&P 500 has fallen 19% — but the good times may be coming to an end.

Driving the news: The New York attorney general's office sent a letter to the company Monday outlining a number of concerns about security flaws and vulnerabilities "that could enable malicious third parties to, among other things, gain surreptitious access to consumer webcams," the New York Times reported.

The big picture: Zoom has taken off as more small- and medium-sized businesses have begun using the service as they have been forced to go remote because of the coronavirus outbreak.

  • However, Goldman Sachs equity research analyst Heather Bellini issued a "sell" rating on the stock, arguing that its current price outpaces reasonable expectations of growth.

Between the lines: Bellini expects around three quarters of the companies currently using Zoom's free trial option will become users, but as the economy worsens she expects many will have to cut their subscriptions to reduce costs and others will simply go out of business.

  • Further, Zoom's stock currently sells for more than 1,600 times trailing earnings and she expects the company's profits growth rate will subside as it ramps up expansion.

Go deeper: Work goes remote in the face of the coronavirus

Go deeper

Erica Pandey, author of @Work
1 hour ago - Economy & Business

The winners and losers of the pandemic holiday season

Illustration: Sarah Grillo/Axios

The pandemic has upended Thanksgiving and the shopping season that the holiday kicks off, creating a new crop of economic winners and losers.

The big picture: Just as it has exacerbated inequality in every other facet of American life, the coronavirus pandemic is deepening inequities in the business world, with the biggest and most powerful companies rapidly outpacing the smaller players.

Coronavirus cases rose 10% in the week before Thanksgiving

Expand chart
Data: The COVID Tracking Project, state health departments; Map: Andrew Witherspoon, Sara Wise/Axios

The daily rate of new coronavirus infections rose by about 10 percent in the final week before Thanksgiving, continuing a dismal trend that may get even worse in the weeks to come.

Why it matters: Travel and large holiday celebrations are most dangerous in places where the virus is spreading widely — and right now, that includes the entire U.S.

Updated 7 hours ago - Politics & Policy

Supreme Court backs religious groups on New York coronavirus restrictions

Photo: Saul Loeb/AFP via Getty Images

The U.S. Supreme Court ruled late Wednesday that restrictions previously imposed on New York places of worship by Gov. Andrew Cuomo (D) during the coronavirus pandemic violated the First Amendment.

Why it matters: The decision in a 5-4 vote heralds the first significant action by the new President Trump-appointed conservative Justice Amy Coney Barrett, who cast the deciding vote in favor of the Catholic Church and Orthodox Jewish synagogues.