Zoom’s Shares Gained Sharply During Covid-19

Zoom Video Communications is one of the American-based technology companies, whose stocks started gain during the pandemic. Eric Yuan founded the technology company in 2011. Significantly, by the end of January 2020, the online platform had 400,000 users, while in May 2020, it had one million customers. Pandemic has played a significant role in the company’s success. According to Zoom’s reports, in February 2020, the organization had 2.2 million users. While in 2019 it had 1.99 million users.

As it already mentioned, Covid-19 turned out to be the key to success for Zoom. During the epidemic, shares of the company boosted sharply, and its share price more than tripled. It is not surprising, as the pandemic locked people inside homes, people started communication (work, study) online.

Moreover, Revenue of Zoom boosted 355%, and in the latest quarter, it hit $663.5 million. On September 1, the company’s fiscal second-quarter witnessed the company earn $0.92 per share over July 31.

According to Eric Yuan, Zoom founder and CEO, their power to keep people connected led to a revenue gain of 355 percent year-over-year in quarter 2. He said It enabled them to grow revenue outlook to almost $2.37 billion to $2.39 billion for FY21.

Zoom’s share value has become a barometer for the pandemic’s market sentiment

Sissions thinks investors should be cautious about giving into their fear of missing out with the stock through Zoom’s revival period.

According to Sissions, Zoom is a great product, and indeed, the demands from the telco view are pretty heavy.

Except for that, Zoom’s share value has become a barometer for the pandemic’s market sentiment in the post-pandemic period. With the current so-called second wave hitting many countries, Zoom has reached to new heights.

Moreover, Sissons tells the investment buyer should not get involved in the stock, even though volatility may be attractive to investors looking to trade a stock like Zoom.