Eric Yuan, founder and chief government officer of Zoom Video Communications Inc., heart, celebrates throughout the firm’s preliminary public providing on the Nasdaq MarketSite in New York on April 18, 2019. Zoom reported internet revenue of $7.6 million on income of $331 million for the yr ended January, and is now price 9 instances the $1 billion valuation it secured after a funding spherical two years in the past.
Victor J. Blue | Bloomberg | Getty Photos
The Securities and Trade Fee suspended trading of Zoom Applied sciences on Thursday, partly as a result of traders are complicated it with Zoom Video, which has seen a surge share worth resulting from COVID-19. It’ll resume buying and selling April 9.
Zoom Video, which supplies videoconferencing providers and trades beneath the ticker image “ZM,” is a key element for a lot of companies shifting to distant work throughout the coronavirus pandemic. That is led to the corporate, which went public final yr, to see a surge in customers and inventory worth rise of greater than 112% this yr up to now — a rarity within the present coronavirus-induced down market. It is now obtained a market cap north of $40 billion.
Nevertheless, merchants have additionally bid up the a lot smaller Zoom Applied sciences, which has the ticker image “ZOOM”. Its inventory is up greater than 50% this month and practically 900% this yr. The corporate has not disclosed monetary data since 2015, the SEC says.
“The Fee briefly suspended buying and selling within the securities of ZOOM due to considerations concerning the adequacy and accuracy of publicly accessible data regarding ZOOM, together with its monetary situation and its operations, if any, in mild of the absence of any public disclosure by the corporate since 2015; and considerations about traders complicated this issuer with a equally named NASDAQ-listed issuer, offering communications providers, which has seen an increase in share worth throughout the ongoing COVID-19 pandemic,” the SEC stated in a filing.