SEC pauses Zoom Technologies as traders confuse it with Zoom Video

Eric Yuan, founder and chief govt officer of Zoom Online video Communications Inc., middle, celebrates in the course of the firm’s original community giving at the Nasdaq MarketSite in New York on April 18, 2019. Zoom noted internet profits of $7.6 million on income of $331 million for the calendar year ended January, and is now value nine times the $1 billion valuation it secured immediately after a funding spherical two yrs ago.

Victor J. Blue | Bloomberg | Getty Photographs

The Securities and Trade Fee suspended trading of Zoom Technologies on Thursday, partly for the reason that buyers are baffling it with Zoom Video clip, which has found a surge share value because of to COVID-19. It will resume buying and selling April 9. 

Zoom Movie, which supplies videoconferencing services and trades under the ticker symbol “ZM,” is a vital element for a lot of companies shifting to distant work during the coronavirus pandemic. That is led to the company, which went community previous calendar year, to see a surge in people and stock price increase of much more than 112% this 12 months so considerably — a rarity in the recent coronavirus-induced down marketplace. It is really now bought a industry cap north of $40 billion.

However, traders have also bid up the significantly lesser Zoom Technologies, which has the ticker symbol “ZOOM”. Its stock is up far more than 50% this month and approximately 900% this calendar year. The enterprise has not disclosed money facts considering that 2015, the SEC claims. 

“The Commission temporarily suspended buying and selling in the securities of ZOOM for the reason that of considerations about the adequacy and precision of publicly offered information and facts about ZOOM, together with its fiscal condition and its operations, if any, in light of the absence of any community disclosure by the company given that 2015 and worries about traders puzzling this issuer with a in the same way named NASDAQ-listed issuer, providing communications products and services, which has viewed a rise in share value through the ongoing COVID-19 pandemic,” the SEC said in a filing. 

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