Eric Yuan, founder and chief executive officer of Zoom Online video Communications Inc., heart, celebrates in the course of the company’s original general public featuring at the Nasdaq MarketSite in New York on April 18, 2019. Zoom reported web revenue of $7.6 million on revenue of $331 million for the 12 months finished January, and is now value nine moments the $1 billion valuation it secured soon after a funding round two several years back.
Victor J. Blue | Bloomberg | Getty Photographs
The Securities and Trade Commission suspended trading of Zoom Systems on Thursday, partly for the reason that traders are puzzling it with Zoom Video, which has noticed a surge share price tag due to COVID-19. It will resume investing April 9.
Zoom Video clip, which gives videoconferencing solutions and trades under the ticker symbol “ZM,” is a important component for lots of businesses shifting to remote get the job done in the course of the coronavirus pandemic. Which is led to the enterprise, which went public past 12 months, to see a surge in users and stock rate rise of much more than 112% this yr so much — a rarity in the recent coronavirus-induced down market. It really is now acquired a sector cap north of $40 billion.
Nevertheless, traders have also bid up the a lot scaled-down Zoom Technologies, which has the ticker symbol “ZOOM”. Its stock is up a lot more than 50% this thirty day period and virtually 900% this calendar year. The enterprise has not disclosed economical facts due to the fact 2015, the SEC states.
“The Commission briefly suspended investing in the securities of ZOOM simply because of problems about the adequacy and precision of publicly readily available data regarding ZOOM, together with its fiscal condition and its functions, if any, in light-weight of the absence of any public disclosure by the organization given that 2015 and concerns about buyers puzzling this issuer with a equally named NASDAQ-shown issuer, furnishing communications products and services, which has found a rise in share price throughout the ongoing COVID-19 pandemic,” the SEC stated in a filing.
Subscribe to CNBC on YouTube.