As world shuts itself in, value of teleconferencing app zooms

As people shut themselves in to keep from infecting each other, the world has moved closer online: taking classes, rehearsing music, holding quiz nights and sitting in on performances from remote locations. The digital pipelines, abuzz like never before, have raised fortunes for at least one teleconferencing company that has seen its market valuation rise more than twofold in two months: Zoom Communications.

Its prime offering, Cloud Meetings, allows anyone to live stream video to a closed group of 100 participants. A paid version allows the webcast to reach up to 1,000 participants. Once known only in the glass-and-concrete business districts of the world, the tool is now the most-favoured for students and teachers, whether in the West Bank, New Delhi or New York.

Independent artists, playwrights and, in one case, even fire-eater performers are also using the tool to replace what may have once been their only way to earn a living: in-person performances.

“Certain aspects of work and organising will change for good,” Sally Maitlis, a professor of organisational behaviour at Oxford University’s Said Business School told news agency AFP. “People will discover that they can work and communicate in ways they previously didn’t think possible.”

On Tuesday, shares of Zoom Video Communications Inc closed at $159 a piece. On January 24, when the outbreak just begun to draw global attention, the stock was listed $73. The spike in valuation is starker when you consider the Nasdaq, on which it is listed, slumped by 22% in the same period.

“There is such excitement around remote work that brands like Zoom have seen their stock value climb up,” Creative Strategies analyst Carolina Milanesi said, according to AFP.

In an earnings call on March 4, Zoom’s CEO Eric Yuan told analysts the company had seen a “large increase in the number of free users, meeting minutes and new video use cases.”

Zoom’s Cloud Meetings is now the top Business category application on the Apple app store.

Teachers, parents and students reported promising early results in US, said a report by Reuters. There were minimal glitches as some signed into virtual live classes using, but they are being described by many as teething troubles.

“I’m someone who constantly throws out questions to my pupils... but with 26 of them on a screen, raising or not a hand icon, it’s incredibly difficult. So I’m totally changing how I do things,” said English teacher Carole Detemple, who had to create a virtual classroom for her students at the International Bilingual School (EIB) in Paris.

IN TWO MONTHS, ZOOM COMMUNICATIONS HAS SEEN ITS MARKET VALUATION RISE MORE THAN TWOFOLD