Despite the controversial news, Zoom Communications Inc (ZM) shares rose in price this week, the company offers solutions to corporate video communications. The company announced the sale of 4.2 million shares of its common stock to raise $1.5 billion. There will be a dilution of approximately 1.4% of the equity of original shareholders. The growth in the past year is insignificant compared to the growth of more than 400% this year. However, it usually results in a fall in quotes. For Zoom, however, the opposite occurred because the shares rose in value because of increased demand.
Furthermore, Zoom announced this week that it had sold one million Zoom Phones since its launch two years ago. The Zoom Phone platform helps users manage their business communications with tools like video conferencing, call recording, and statistics collection.
Various studies estimate that between 75 and 100 million users use Zoom’s communication services in the wake of the COVID-19 outbreak. Although only 20 million people pay for Zoom, Zoom requires increased investment to monetize its services and continue to grow its audience. Zoom’s cash flow will increase several times with its current customer base if it could monetize it. However, moving free users to the paid category is challenging because non-unique service providers are not unique in this regard.
In Thursday’s market trading, Zoom Video Communications increased by 5.10%. At $383.24 per share, the stock is currently up 13.61% year to date on the stock market. Zoom Video Communications Inc. (ZM) ‘s market capitalization stands at $107.38 billion at the time of writing. The average daily volume of ZM for the past month (6744625 shares per day) is below its average daily volume over the last year by 35.59, indicating less market activity for this stock recently.