New York - (AP) — Zoom surged in early trading Tuesday, making the video conferencing company more valuable than well-established companies in the auto and aviation industries.
The shares rose 33% to $432.45, pushing Zoom’s market value to nearly $122 billion, after it reported explosive growth during the second quarter as more people paid for subscriptions, giving them more control over virtual meetings. Zoom’s revenue more than quadrupled from the same time last year to $663.5 million and profits blew past Wall Street forecasts.
At the current level, Zoom’s market value exceeds that of two storied automakers, General Motors and Ford, combined, as well the value of aviation giant Boeing and consumer favorite Starbucks.
The company is one of the key beneficiaries of the virus pandemic as more people log on to its videoconferencing service to work from home.
In a show of confidence, Zoom raised its revenue projection for its fiscal year ending in January to nearly $2.4 billion, up from roughly $1.8 billion that the San Jose, California, company predicted in early June. The forecast is now more than double the $910 million revenue that Zoom had anticipated as it began its fiscal year.