Shares of Zoom Technologies went up by 47,000% after the IPO of the Zoom startup. Many investors bought them by mistake.

Image: Pexels

This week, the company has developed its IPO service developer for video conferencing Zoom . The yield on the exchange turned out to be successful - on the first day of trading, the value of the shares soared by 76%, however, it was not without embarrassment.
')
It turned out that shares of another company with a similar name are being traded on the stock exchange - Zoom Technologies produces telecommunications equipment. Many investors mistakenly began to buy shares of the wrong company, as a result of which the papers of the “wrong” Zoom increased in price by 47,000%.

What happened

Shares of Zoom Technologies are traded under the ticker Zoom, and the shares of the IPO-held Zoom Video Communications are designated ZM. As a result, many investors confused the company and by mistake they bought shares of a telecom company, instead of a startup.

In March, Zoom Technologies shares were worth $ 0.005, right before the IPO of Zoom Video Communications they went up to more than $ 5, then the price dropped to $ 2.7 per share. The total increase in share value was 47,000%.

Read more about Zoom Technologies

Zoom Technologies is a company based in China that develops communications equipment. Its market value is only $ 14 million, the company employs only 10 people. During the IPO in 2019, its shares were sold at a price of 1 cent per share.

According to the data listed on the Yahoo! company card, it “does not conduct significant transactions.”

Zoom video conferencing service held an IPO on April 18. The start-up of a startup on the stock exchange became a hot topic of the day - the value of the company's shares at the close of the first day's trading was $ 62, which is more than 72% higher than the starting price during the IPO.

Other materials on finance and stock market from ITI Capital :

• Western securities analysis tool
• Analytics and market reviews
• Purchase of shares of American companies from Russia
• Huawei overtook Apple in terms of sales. The capitalization of the American company still reached $ 1 trillion
• Analysts: Microsoft's capitalization could reach $ 1 trillion
• Mass media: large-scale cyber attacks accelerated the growth of capitalization of companies in the information security industry
• Bloomberg: Hedge Funds Recognize Brexit Results Before Others And Earn Billions