One of the most important and popular reasons for using Zoom is the quality of the participants, and not only their members, but also the moderators. Some companies need remote help, and when there are difficulties in finding the right people for a job, they use Zoom.
To say Zoom Video -4. Year to date, shares have more than doubled -- with no end in sight. Zoom has become a critical component of the self-isolated lifestyle, resulting in and time spent on its video-conferencing software. The stock has gotten so popular the Securities and Exchange Commission was forced to suspend trading in Zoom Technologies recently, because investors thought they were investing in Zoom Video.
Amid all that hype, it's not surprising Why is Zoom so popular? investors are calling Zoom a bubble stock. It's trading at a lofty valuation, and they argue it's too rich compared to rivals in the software-as-a-service market.
Why Zoom Is Booming
But Zoom has a lot going for it, including envious revenue growth, that makes it more than a one-hit-wonder. Zoom stands out for its ease of use Seemingly overnight, millions of Americans are sheltered in place. That means families are separated, schools closed, and events canceled. To stay in touch, school systems, companies, and families and friends have turned to Zoom.
The fact that it offers free services makes it an attractive option, but there is also the ease of use that's common in most winning technology products. That makes it a no-brainer for shell-shocked people and companies who need to stay connected in this now remote world. We're just weeks into social distancing in the U. However, this red-hot growth isn't driven only by the coronavirus.
Zoom was growing quickly before the pandemic. It ranked seventh as the fastest-growing app in the enterprise market by Okta, the cloud software company, and for its fiscal 2020 fourth quarter, it reported 78% year-over-year revenue growth. Why is Zoom so popular?
ended fiscal 2020 with about 81,900 customers with more than 10 employees, marking a 61% increase over the prior year. Those numbers should be even higher when Zoom reports fiscal first-quarter results. Diversification with a corporate product Zoom may be getting a lot of attention from regular users downloading its app, but its Zoom Phone offering could see a lift among business customers during the pandemic too.
The cloud-based phone system is available for people who want to make a Zoom call but don't want video conferencing. With so many offices emptied of staff, that service is likely to become more popular during the pandemic. The more business customers it adds to the roster, the more valuable Zoom will be in the eyes of investors.
kiskimaastakin.com : Why is Zoom so much more popular than standards
Over time, as people get accustomed to working from home, virtual classrooms, and cloud-based calls, companies may not be so quick to return to the old ways of conducting business. After all, there are a lot of advantages to having a remote workforce. It can reduce employees' commute times, boost productivity, help curb greenhouse emissions, and lower costs. It also allows companies to have a diverse workforce all over the world collaborating in real time. That may prove too appealing to fully go back to traditional physical offices.
Zoom didn't appear on the scene because of coronavirus, nor will it disappear once the virus is contained.
There's no question the stock is enjoying Why is Zoom so popular? hype right now, but with a growing corporate and consumer user base -- and with video conferencing here to stay -- the future looks bright for this.