Business

Coronavirus: Zoom's stocks spike after remote work announcements

Slack shares, however, plummet 20% after its growth forecast fails to encourage investors

Video conferencing softwares including Zoom, Google (with its Hangouts Meet), Microsoft (with its Teams) and Cisco (which owns WebEx), have expanded their free offerings to help businesses and schools that need to rapidly increase their use of such products. Photo: Shutterstock
  • Zoom’s share rise 43.75% since January 21
  • It means an appreciation of $ 76.73 per paper to $ 110.30 per paper, considering the closing price this Thursday (12)

Although the new coronavirus have had catastrophic effects worldwide as Big Techs have strong losses amid widespread falls in the stock markets, Zoom Video platform expects to increase its numbers of users due to the remote work demand. It’s been said by Valor Investe.

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The work from home enabler experienced a strong recovery: its share rise 43.75% since January 21, when the first cases of the new coronavirus in China were announced. This means an appreciation of $ 76.73 per paper to $ 110.30 per paper, considering the closing price this Thursday (12). And the appreciation is even greater when the trading value of the share in the recent IPO is considered, of $ 65 per share.

To specialists, the explanation to this scenario of rise is related to the expectation on increasing the number of users. The result of the fourth quarter of 2019 also weighed in, with a 78% growth in revenue, on an annual basis, as Valor Investe reported.

Talking about work tools, on the other hand, Slack – a workplace communication app – shared plummet 20% after its growth forecast failed to excite investors, as TechCrunch said so.

According to the media outlet, in the fourth quarter, Slack‘s revenue rose to $181.9 million, a gain of 49% compared to the year-ago quarter. Investors had expected Slack to report $174.14 million in top line. The company, therefore, beat on growth. Slack also reported gross margins of 86.6% in the period, a large operating loss of $91.2 million, and negative net income of $89.1 million.