Zoom Is Bigger Than 109-Year-Old IBM With A $125 Billion Market Cap
In fact, the market cap has also crossed that of aircraft manufacturer Boeing as well as the cafe chain Starbucks.
Ever since COVID-19 has forced us to lock ourselves indoors, our reliance on video conferencing apps rose, so much so that companies like Zoom that once only took a small chunk of the market share have now managed to create an even larger impact.
And now it has grown into a behemoth that it has surpassed tech giant IBM in market cap.
Reuters
Yesterday, Zoom¡¯s market cap skyrocketed to $125 billion, blowing past IBM¡¯s market cap of around $110 billion. Zoom¡¯s stock ended the day with a 41 percent hike, earning as much as 92 cents in a share, bringing the year to date gains to around 572 percent.
Why such a sudden spike?
The reason such a sudden spike was witnessed by the stock market was because on Monday, Zoom reported that sales jumped 355 percent to $663.5 million in the three months through July 31 from a year earlier.
Zoom raised its revenue projection for its fiscal year ending in January to nearly $2.4 billion, up from roughly $1.8 billion that the company predicted in early June. The prediction is more than double the $910 million revenue that Zoom had anticipated as its fiscal year began.
Eric Yuan¡¯s wealth surged too
With the share prices of Zoom soaring, founder and CEO Eric Yuan¡¯s net worth skyrocketed too, going up to $6.6 billion, bringing it to $23 billion according to Bloomberg Billionaires Index.
Reuters
He owns more than 50 million Zoom shares that have contributed to the spike in his net worth.
Zooming past despite challenges
While the numbers surely show an easy journey, Zoom hasn¡¯t had a smooth transition. From tackling security vulnerabilities (which it addressed with future updates) to severe competition from leading video conferencing apps like Google Meet, Microsoft Teams, Cisco WebEx and others, along with anti-China concerns looming over it, it has been trying to keep its ship afloat.
In June, the video conferencing app crossed 300 million daily participants with over two trillion meeting minutes. The video conferencing app also introduced encryption for its paid subscribers which was a much-needed inclusion requested by many.
