Eric Yuan, founder and CEO of Zoom Video Communications Inc., Center, celebrates during the company’s IPO on Nasdaq MarketSite in New York on April 18, 2019. Zoom reported a net profit of $ 7.6 million on sales of 331 $ Million for The year ended in January and is now worth nine times the valuation of $ 1 billion it received after a round of funding two years ago.
Victor J. Blue | Bloomberg | Getty Images
The Securities and Exchange Commission discontinued trading in Zoom Technologies on Thursday, partly because investors are mistaking it for Zoom Video, which saw a rise in its share price due to COVID-1
Zoom Video, which offers video conferencing services and trades under the ticker symbol “ZM”, is a key component for many companies switching to remote work during the coronavirus pandemic. As a result, the company that went public last year saw user and stock prices rise more than 112% this year – a rarity in the down market currently caused by corona viruses. It now has a market cap north of $ 40 billion.
However, retailers have also offered the much smaller Zoom Technologies with the ticker symbol “ZOOM”. The stock rose more than 50% this month and almost 900% this year. The company has not released financial information since 2015, the SEC said.
“The Commission has temporarily suspended trading in ZOOM securities because of concerns about the adequacy and accuracy of publicly available information about ZOOM, including its financial position and, if applicable, its business, since the company has not made public disclosure since 2015; and concerns about the confusion of this issuer with a NASDAQ-named issuer that provides communications services and whose stock price rose during the ongoing COVID-19 pandemic, “the SEC said in a report.
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