If that wasn’t enough, headlines just hit yesterday that Alphabet (NASDAQ: GOOG, GOOGL) was entering the free video conferencing fray by making its video conferencing tool, Meet, available to the masses. The news ultimately drove ZM stock down some 12% on Friday, reversing earlier gains that had the stock courting record highs. Last Friday, Facebook announced a video conferencing platform dubbed “Messenger Rooms.” The tool will allow 50 people to video conference at once and places the social media king in direct competition with Zoom. Competition from rivals also has shareholders rethinking their investment. Competition Heating Up for Zoom StockĪ slip of the tongue isn’t the only issue plaguing Zoom this week. Because of the misleading verbiage used, the company overinflated the actual number of users. To avoid getting lost in the weeds on the definition differences, let’s just jump to the takeaway. Originally, Zoom stated they had “more than 300 million daily active users,” and “300 million people around the world are using Zoom.” Later the company modified the post, removing both phrases and stating instead that they had “300 million daily Zoom meeting participants.” This morning’s drama surrounded a correction the company made to a blog post that inflated the number of users.
At last week’s peak, the stock’s year-to-date gain stood at a whopping 167%, and we’re still in April. Fortunately for fanboys, their affection has been reciprocated. Investors seeking to capitalize on the global pandemic have had ZM stock on their radar since the beginning.
Zoom has ridden the stay-at-home wave and captured millions of new users. Let’s take a closer look at what’s going on, and more importantly, how to trade it. Today’s drop was caused by the company admitting it doesn’t have 300 million daily active users.
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