According to network sources, the capitalization of Zoom Video Communications Inc, which is the developer of the popular video conferencing service Zoom, soared to a record high by the end of Friday trading and exceeded $50 billion for the first time. It is noteworthy that at the beginning of 2020, Zoom's capitalization was at the level of $20 billion.
In five months of this year, Zoom has risen in price by 160%. The COVID-19 pandemic has contributed to such a significant jump, due to which people around the world have had to observe self-isolation measures and work from home. This has led to the explosive growth in the popularity of group video conferencing services, which are successfully used for meetings, meetings, training, etc. The source notes that at the moment the developer of the Zoom service is worth more than the American engineering company Deere & Co and the pharmaceutical company Biogen Inc.
Despite the explosive growth in the popularity of video conferencing services in recent months, there was no clear reason for the increase in the value of Zoom shares in recent days. Most likely, investors are counting on the fact that a pandemic will create a situation conducive to long-term growth in income. Zoom is currently capitalized at 55 times its expected annual revenue, while software and services companies listed in the S&P 500 trade on average 7 times its expected revenue.
It is worth noting that Zoom founder and CEO Eric Yuan increased his net worth by about $800 million in Friday trading. According to the Bloomberg Billionaires Index, his fortune is now estimated at $9,3 billion.
Source: 3dnews.ru