By Marko Vidrih on The Capital
On Friday, May 29, the value of shares of Zoom Video Communications Inc on the Nasdaq stock exchange grew by 9.7%, after that the company’s market capitalization for the first time exceeded $50 billion.
Bloomberg notes that over the past few months, video conferencing services have risen in price by 160%. Back in early 2020, the value of Zoom did not exceed $20 billion.
The agency points out that now the IT company is more expensive than the American tractor manufacturer Deere & Co and the pharmaceutical giant Biogen Inc combined. At the same time, Zoom’s capitalization is 55 times higher than its expected annual revenue, although for IT companies from the S&P 500 index this figure is on average 7, Bloomberg writes.
The fortune of Eric Yuan, the founder and CEO of Zoom, on Friday grew by more than $800 million and reached $9.3 billion.
According to analysts, the sharp jump in trading on May 29 is due to the positive expectations of investors who are counting on a long-term increase in company earnings amid the coronavirus pandemic.
The service for video conferencing Zoom became extremely popular in the spring of 2020 when many people around the world were forced to switch to a remote mode of work or training.
In early April, service developers said that in just a few months, their audience grew more than 20 times.
Later, thousands of Zoom call records leaked into the network. Among them were records of personal conversations and sessions with psychotherapists, and in some conversations people voiced phone numbers and even financial information. Zoom admitted that the application is not safe enough, but this did not scare users away.
Author: Marko Vidrih
Featured image credit: Reuters
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