Zoom Video Communications, approved for a listing on Nasdaq under the thicker (ZM), opened the first trading session on April 18th, 2019, on the same day that Pinterest (PINS) went public as well.
Pinterest has a had an amazingly successful trading session with 28% of increase in share price, however, Zoom stock jumped by 80% already on the first day of its IPO sale.
Zoom planned to start the first trading session at the price range between 28$ and 32$ per share, later changing the share price range to the value between 32$ and 35$, only to decide to open the trade at 36$.
Despite the plan, the company saw an 80% of increase, which means that Zoom hit the price of 62% right at the very start of the trading session on April 18th.
The stock hit the highest value of 66.70$ on April 25th, however, it is traded at 65$ only a day later.
Still, analysts following Zoom performance indicate the stock will continue to grow.
Investors Showcasing a Strong Demand for Zoom Stocks (ZM)
The fact that Zoom Video Communications represents one of the rare tech companies with IPOs already showcasing strong profitability.
With 7.6 million in booking recorded in 2018, Zoom appeared to have underestimated the value of their stocks which is why the price jumped by 80% in such a short period of time.
Zoom (ZM) Financial Reports
Zoom reported their revenue for fiscal 2019, which includes the period between January 2018 and January 2019, recording 330 million dollars at 118% of increase year to year.
Additionally, Zoom reported cash flow of 51 million dollars for 2019, generating a net income of 7.6 million dollars.
The company reported losses by 3.8 million dollars for the same period of time, while Zoom belongs to a highly profitable sector of cloud-based and SaaS services.