It's a little bit I want to talk about the positive economic impact of a potentially global pandemic, but the novel corona virus was not bad news for every company.
Video conferencing provider Zoom appears to be a beneficiary; After the IPO in 2019, the share price rose from around USD 68 at the beginning of the year to USD 115 today. Why? With governments blocking cities and closing borders – and companies and conferences are being switched to virtual for the time being – services like Zoom are well positioned to record increased demand. (In fact, Zoom announced today that it is launching selected products in new areas after improving its free service in affected regions.)
It is perhaps not surprising that Zoom's shares have appreciated.
The company quickly developed from a relatively unknown video chat climber to a celebrated profitable IPO that is now synonymous with its product category in the startup world. The growing interest of investors in Zoom only corresponds to the growing brand. Of course, people looking for a trade – whatever your moral center feels like – could stack their chips on zoom.
Zoom's growth in value raises two questions: Are startups that focus on the future of work and remote working more in demand worldwide? If so, what impact does this have on your growth? (Are you a startup that creates remote work tools? Email me if the outbreak affected your growth rates.)
Fortunately for you and me, Zoom will report the earnings tomorrow. The quarter that Zoom will report on, the fourth quarter of the 2020 fiscal year, ran from November 1, 2019 to the end of January 2020. It therefore includes some time in which the novel corona virus was active and affected work and possibly corporate behavior. Of course, the next quarter will be more interesting, but Zoom should provide guidance for that period. So we'll look at what's ahead, even if it's temporary.
What about startups?
If Zoom has an optimistic outlook, it could spur other similar companies.