A booming business amidst the lockdown 💻

The kid’s classes are scheduled to begin in the first week of April and it doesn’t seem like it will. Then the institute came up with the plan to conduct online classes. But do we have the infrastructure for that? And that’s when I first heard about the Zoom app. As per the institute’s instructions, we installed Zoom app on the laptop and the kid is now attending online classes. Power to tech !!

It’s not just the online classes, the corporates have long been using it to get their meetings and discussions done remotely. Zoom has suddenly become the conduit to keep the business and learning flowing. Zoom app is developed by a US based company called Zoom Video Communications.

Zoom’s (ZM) popularity and usefulness amidst COVID-19 pandemic is being reflected in its share price also. Its debut on NASDAQ was on Apr 2019; the IPO was at $36 a share and currently the share price is $151.70.

Source: Google
Source: Google

And here’s an interesting story…

This surge in the investor interest in Zoom has also lifted the fortunes of a namesake called Zoom Technologies with the ticker symbol “ZOOM” while the app company Zoom Video Communications has the ticker symbol “ZM”. You can’t blame the investors, when they say buy Zoom to their broker- ZOOM or ZM?

Zoom Technologies is involved in the business of development and sale of electronic  products for mobile phones. The SEC (our SEBI equivalent in the US) has suspended the trading of Zoom Technologies until 8 Apr 2020 as the company has not disclosed publicly any info on its financials since 2015 which is mandatory for publicly traded companies and people are confusing the company with Zoom Video. And the name confusion has also seen a surge in the share price of Zoom Technologies or ZOOM.

This is not the first time, investors have got confused with a star and it’s namesake. But it would be painful for the people who merely followed a tip or advice to buy shares of Zoom(ZM) and ended up with “ZOOM”.

Till next post, take care !!

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