Zoom share price up 10% after IPO debut on Wall Street
The videoconferencing company's stock soars on its first day on the US stock market.
Zoom share price rose the day after launching its IPO on Wall Street. Zoom’s stock started selling up to 70% above its IPO price of $36 on its debut day.
Why is Zoom’s share price up?
Zoom is a cloud videoconferencing company founded by chief executive officer(CEO), Eric Yuan, in 2011. Though Yuan was told there was an oversupply of remote conference services, he built Zoom up by pioneering smartphone videoconferencing and by providing one-on-one customer service.
‘We really spend the time talking with our customers. We try to be the first vendor to address customers' problems and try to be the vendor to come up with a better solution,’ said Yuan.
Zoom became so successful that when the company went public, it was valued at $9.2 billion. Kelly Steckleberg, Zoom’s chief financial officer(CFO), said that the corporation’s dedication to innovation helped Zoom succeed after going public.
‘Zoom really is transforming the way people work and the investors believe in that’, said Steckleberg.
Can Zoom’s share price continue to grow?
In contrast to many of the 2019 eagerly awaited IPO’s like Uber and recent entries like Lyft's IPO launch, Zoom is already profitable. The company reported a profit of $7 million and revenue of $330 million.
‘We’ve been generating free cash flows for each of the last three years, so this is not a new phenomenon for this company. It is the approach we have always taken,’ said Steckleberg.
Despite the struggle of Lyft’s stock, Steckelberg is confident in Zoom’s share price.
‘It is a very favorable market at the moment. Investors really see the opportunity for ‘software as a service’ companies,’ said Steckleberg.
Even with the first success of Zoom’s stock, Yuan wants the company to achieve more.
‘Today is a milestone for Zoom, but I see ahead the many milestones we have to look forward to as a company. I expect some of them to be even more exciting than today,’ said Yuan.
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