People bought the wrong Zoom shares, it rose 900%

People bought wrong Zoom shares and it rose 900 percent

The Zoom shares has skyrocketed in the past few days. However, this is not the currently popular video conference tool.

The video conferencing service Zoom is one of the winners of the coronavirus crisis, but has often been mistaken on the stock exchange for a completely different company. To prevent further irritation, the US stock exchange regulator temporarily stopped trading the namesake Zoom Technologies on Thursday.

zoomtech share price

Anyone who did not look closely as an investor could easily get hold of the shares. Because the ticker abbreviation “ZOOM” is occupied by Zoom Technologies, which has given the company a price increase of almost 900 percent since the beginning of the year. The problem: The company has nothing to do with the successful video conference provider Zoom Video.

Zoom Tech is ZOOM, while Zoom Video is ZM

Zoom Video has only been listed on the stock exchange since 2019 and has the ticker abbreviation “ZM”. The video conference provider benefits from the fact that many office jobs in the coronavirus crisis have been converted to home office. The stock price rose 112 percent this year. This means that the plus is significantly lower than that of the confusion candidate.

zoom video stock share price

The SEC initially suspended Zoom Technologies’ “ZOOM” shares until April 8, and raised doubts about public information about the company’s financial position, as it had not submitted annual reports since 2015.

The SEC simply says that, according to information from 2014, it is a Delaware-based company that is headquartered in Beijing, China. Before the trade freeze, the company had a market value of $ 31.3 million. Zoom Video makes almost $40 billion a year.