One of the main tech stocks to watch this year has been the American company Zoom Video Communications Inc. At the beginning of 2020, very few people had heard of Zoom. The company lagged behind other more popular video conferencing software like Skype and Hangouts in terms of profile, but this was soon to change in a big way.
This year has so far been one like none other. Businesses around the globe have been decimated by the implications of the COVID-19 pandemic. There are not many companies which have come out of the situation unscathed by the incredible losses that are being felt across almost every industry, by Zoom is one of them.
Zoom: Company Profile
Founded in 2011, Zoom Communications is a tech company that provides video conferencing and online chat services. Zoom is headquartered in San Jose, California and released its first software platform in 2013 with the aim of providing a product which was easier and simpler to use than its competitors.
The Zoom software is a cloud-based peer-to-peer platform designed to be used for teleconferencing, telecommuting, distance education and social relations. Zoom has pioneered a system which allows people to enter video conferences without having to sign in to their account or even download the Zoom software.
One of the reasons that Zoom is so popular is the extra functionality that it has over Skype and other competitors. Users enjoy being able to set up breakout sessions, virtually put their hand up to ask to speak, and many other innovations that ease communication, making it more similar to face-to-face communication.
Zoom and the Pandemic
Zoom CEO Eric Yuan could simply not have imagined the benefits that the pandemic would bring to his company. The necessary lockdown and social distancing policies implemented by governments around the world has proved a massive boost to video conferencing services like Zoom. Whereas once it was mainly used for remote meetings among businesspeople, Zoom is now being used by friends and families to communicate in these complicated times.
The uptick of Zoom in 2020 has been nothing short of miraculous. The company recently announced revenue growth of 169% on the previous year, putting it high on the list of good tech stocks to invest in in what remains of the year. The numbers would be even more impressive were it not for the large amount of money that Zoom has had to invest in improving cloud capacity and security. However, with this new infrastructure, the company is now geared towards catering to larger numbers of users, which will likely mean further growth in the coming years.
For people who know how to invest in tech stocks, Zoom is still a solid investment option going forward. Although numbers may retract slightly when the pandemic has blown over, Zoom has really made a name for itself in the last few months and has become many people’s go-to video conferencing software option. This newfound popularity is likely to stimulate further growth as more and more people flock to use the Zoom software.