Investors appear to trade wrong Zoom company shares before IPO

Investors appear to trade wrong Zoom company shares before IPO


Shares of Zoom are in high demand on Thursday morning but there’s one problem: It appears to be a case of mistaken identity.

Zoom Technologies (ticker ZOOM) is not the company Zoom Video Communications (ticker ZM) that began publicly trading Thursday on the Nasdaq.

Rather, Zoom Technologies is a tiny Chinese wireless communications company that “does not have significant operations,” according to its profile on Yahoo. But within two hours of trading, shares of ZOOM surged more than 80%, with trading volume that was quadruple the amount of shares that change hands on the average day. The stock later returned most of those gains, ending the day up 10.2%.

Zoom Technologies also has a market value of just $14 million and began 2019 trading at 1 cent a share. At a high of $5.50 a share in midday trading, the stock was up more than 47,000% this year.

Zoom Video Communications stock is in high demand Thursday, as the shares made their debut on the Nasdaq at $65 a share – nearly double the $36 a share the company priced its IPO at Wednesday.



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