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Summary
- WFH has proven to be a boon for some of the teleconferencing companies like Zoom, making remote work possible during the difficult times of global crisis.
- The founder and CEO of Zoom Video Communications, Eric Yuan’s net worth surged by $6.6 billion in a day
- Zoom’s shares have sky-rocketed during the pandemic, with friends and families keeping in touch virtually.
The lockdowns which were introduced by the different governments to flatten the Covid-19 curve, changed the way people work, especially those in the organised sector. Most of the employees in the organised sector continued to work during the lockdown, but from home. Though the IT sector is familiar with the concept, this was the first experience for employees in other sectors. Working from home saves time and money on the daily commute. It has also proven to be a boon for some of the teleconferencing companies like Zoom, making remote work possible during the difficult times of global crisis.
It’s not only the people benefitting from the rise of the companies but its shareholders and the owners as well, who amassed huge wealth during the exponential surge of the company’s fortune. The founder and CEO of Zoom Video Communications, Eric Yuan’s net worth surged by $6.6 billion in a day (after the stocks surged 41 per cent), as per Bloomberg Billionaires Index, to $23 billion after US markets closed on 1 September 2020. According to Bloomberg, Yuan has already made his place in the world’s 100 richest people, worth some $23 billion. Zoom’s shares have sky-rocketed during the pandemic, with friends and families keeping in touch virtually. Zoom’s stock price has increased more than six times in 2020.
Apart from Zoom, many of the tech companies have also climbed to new financial heights, even when the economy is suffering. Jeff Bezos, Amazon’s CEO saw an increase in his net worth by $13 billion in one July day, and Elon Musk, Tesla’s CEO also witnessed $8 billion increase in a day in August.
Zoom has been making headlines for witnessing an explosive growth in 2020, fueled by the increase in remote working during the Covid-19 pandemic. The company earned so much of money in the past three months, what it had in all of 2019, beating analysts’ already optimistic predictions. The adjusted earnings of the company were reported as $0.92 per share, above the expected $0.45 per share. Revenue increased 355 per cent from the same period last year to $663.5 million, above analysts’ average estimate of $500.5 million.
Some report suggests that the video conferencing platform also saw an increase in the number of paying customers this quarter, which was up about 458 per cent from the same quarter last year, with around 370,200 customers.
Products Offered by Zoom
The owner, Eric Yuan ensured that the virtual-meeting platform, Zoom is capable of coping with the surge in demand from people staying home to avoid the spread of Covid-19. In spite of facing security and confidentiality issues during the early quarantine period, Zoom emerged as an essential application. It has attracted more than 300 million customers in comparison with 10 million in December. It allows a virtual meeting of as long as 40 minutes for no charge.
Growth Strategies Adopted by Zoom
The company has been focusing on the following elements in order to achieve growth:
It is believed by many experts that remote working provides the tech sector with an opportunity to reshape and reassess how organisations’ can better invest in their employees.
Let’s put some light on the London Stock Exchange (LSE) listed technology stocks which have been performing well during the Covid-19 crisis.
Rightmove PLC
Rightmove PLC (LON:RMV) on 9 September 2020, was trading at GBX 618.40 as at 4:03 PM, down by 0.58 per cent from its previous close of GBX 622.00. The 52 weeks low/high range was reported at GBX 400.10/701.20. It was having a market capitalisation (Mcap) of £5,430.70 million. The company delivered a negative return on the price of 2.93 per cent on a YTD basis.
Dotdigital Group PLC
Dotdigital Group PLC (LON:DOTD) on 9 September 2020, was trading at GBX 122.00 as at 4:05 PM, down by 3.94 per cent from its previous close of GBX 127.00. The range of 52-weeks low and high was reported at GBX 71.00-141.50. It was having a market capitalisation (Mcap) of £378.32 million. The company delivered a positive return on the price of 27.64 per cent on a YTD basis.
Sage Group PLC
Sage Group PLC (LON:SGE) on 9 September 2020, was trading at GBX 731.80 as at 4:09 PM, up by 2.50 per cent from its previous close of GBX 712.80. The 52 weeks low/high range was reported at GBX 534.80/794.60. It was having a market capitalisation (Mcap) of £7,786.63 million. The company delivered a negative return on the price of 4.65 per cent on a YTD basis.
Keywords Studios PLC
Keywords Studios PLC (LON:KWS) on 9 September 2020, was trading at GBX 2,194.00 as at 4:11 PM, up by 0.64 per cent from its previous close of GBX 2,180.00. The range of 52 weeks low and high was reported at GBX 1,073.00-2,250.00. It was having a market capitalisation (Mcap) of £1,610.27 million. The company delivered a positive 41.62 per cent return on the price on a YTD basis.
