Zoom Shares Jump After Company Reports Surging Demand During Pandemic

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Video-technology company Zoom raised its financial forecast, powered by companies with employees working from home during the coronavirus pandemic

Zoom Video Communications Inc.’s stock soared a day after the video-chat company that has gained popularity during the pandemic reported another big jump in users and raised its financial forecast.

Shares of the company were up about 38% to $449 in early-afternoon trading, giving the company a market value of about $131 billion. Shares rose as much as 47% earlier in the trading session. Zoom completed a public offering in April of last year, pricing shares at $36 each. Shares are up roughly six times so far this year, a 563% gain in percentage terms., reporting a profit of $185.7 million on sales that had increased about fivefold from the year earlier to $663.5 million.

for companies with workforces scattered out of closed offices, individuals reaching friends and families during Covid 19 quarantines and for organizations like schools and medical institutions. Zoom said it has more than 370,000 customers with more than 10 employees and that the number of its most lucrative customers doubled compared with the year before.

 

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Stock price is up almost 4x over the past 6 months.

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