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Source: Dubai – Mr. Muhammad
With the increase in demand for video applications in light of the social divergence measures imposed by the emerging Corona Virus pandemic, “Covid 19”, the actions of these companies witnessed record participation by investors and made huge profits in light of the wave of declines that have hit the stock markets since the crisis started earlier this year
Among the shares of companies that have seen strong investor demand, the company that owns the Zoom video chat app, which has made billions of dollars in profit in light of strong user demand that They are in their homes and they want to break the restrictions of social divergence imposed on them.
However, the company’s shares caused a strange paradox with the increase in shares of another company of the same name and listed on the US money market, which is “Zoom Technologies”, the manufacturer of communications equipment and its trade symbol “Zoom”, while the company that owns the application is named Zoom Video Communications Inc and its trade symbol ZM.
The similarity of the names caused a strong wave of purchase by investors of the shares of the small company that does not actually own the application, since the investment data indicates that the shares of the company increased in levels of approximately $ 1.25 in mid-February to levels of approximately $ 20 until March 20 before investors discovered They mistakenly bought the company’s shares at their normal levels.
The US Securities and Exchange Commission. USA She was forced to step in to remove the confusion that occurred with investors on March 26, when she decided to stop trading until April 8, according to Bloomberg.
The authority said in a statement that the company that was suspended from the trade occurred because its name resembles the company that owns Zoom for video chats, noting that this company has not disclosed its financial position since 2015.
Shares in Zoom Video Communications Inc., the owner of the video chat app, are experiencing sharp increases as the company has managed to add approximately 100 million users to the app over the past three weeks to reach the number of users of the app, approximately 300 million users despite privacy risks received after reports of serious security vulnerabilities showing user data for breach.
The company’s current market value is approximately $ 40 billion, while the market value of the other small company, whose name is similar, is approximately $ 30 million, according to Bloomberg.
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