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Some Wall Street investors get rich with Zoom, but it's not the right one.
We heard a lot about the very public debut of Zoom Video Communications Inc.
ZM, + 75.14%
the $ 1 billion enterprise videoconferencing software company debuted on Nasdaq Inc.
NDAQ, + 0.12%
trading Thursday noon, but the shares of another unrelated company have more wisely zoomed in the last 30 days.
Zoom Technologies Inc.
ZOOM, + 6.12%
an over-the-counter penny stock, with the "ZOOM" symbol, worth less than a penny last month, has risen 56,000% in the last 30 days, raising the question of euphoria surrounding 39, other Zoom.
Last Thursday, the shares of Zoom Technologies, which describes itself as a telecommunications company, grew by 61%.
Recent gains mean that $ 100 invested in the entity on March 21, when the shares were worth about $ 0.005, would have returned about $ 84,000 to an investor as of Thursday morning.
Business Insider pointed to the apparent confusion of the ticker in March, but the actions have only prolonged their parabolic rise, indicating that seemingly insane investors continue to throw money (rightly or wrongly, according to their perspective) at the wrong Zoom.
Lily: Zoom Video Expands the Price Range Expected for IPOs, Increasing Potential Market Capitalization to Over $ 9 Billion
Zoom Tech., For its part, has not reported any revenue since 2011 and reportedly filed a file with the Securities and Exchange Commission to terminate its mandate as a publicly traded company, but to no avail .
MarketWatch's attempts to contact the company were not immediately successful.
Certainly, this kind of confusion between a very small company with a similar name, or stock exchange symbol, and a more highly-rated, more daring entity that is about to enter the public market, is not without precedent.
For example, in 2013, as a Twitter microblogging site Inc.
tWTR, -0.07%
Tweeter Home Entertainment Group Inc. saw its shares soar by more than 500%, forcing its actions to be stopped.
At that time, Tweeter's shares continued to record bids despite the fact that the Boston-based consumer electronics chain was bankrupt in Chapter 11 and had liquidated its assets in 2008, six years before the introduction in September. Twitter purse.
Since the beginning of the year, Zoom Tech shares have risen by 44,900%, compared to those of the S & P 500 index.
SPX, + 0.16%
average gain of 15.5%, the Dow Jones Industrial Average Index
DJIA, + 0.40%
Return of 13.4% and the Nasdaq Composite Index
COMP -0.02%
nearly 20% are back to date in 2019.
Meanwhile, Zoom Video Communications Inc., whose symbol is "ZM", started the transaction for $ 65, compared with $ 36 the day before. Its shareholders, perhaps, may hope that it performs nearly half of his son's performance.
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