Zoom is increasing. No, not this zoom.
Zoom Technologies, a maker of mobile phone components based in Beijing, whose shares are traded for less than 1 cent every two months, has risen more than 70,000 percent since March 12. The catalyst? Who knows, but the confusion stimulated by the commercial debut of a much larger company, Zoom Video Communications, is a very plausible explanation.
Zoom Technologies' negotiations began in mid-March, just as Zoom Video, a software company that allegedly attracted interest from Microsoft, registered its registration for a public offering. Interest and confusion raised over-the-counter stocks to $ 5.76 per share, or a market value of about $ 17 million ($ 24 million). The average trading volume last month rose to almost 75,000 shares, or 24 times the average of 3,000 shares traded in 2018.
Compare that with the premiere of Zoom Video on Thursday, whose market value exceeded $ 16 billion, with more than 13 million shares traded within the first 30 minutes of opening. The shares gained 83% over the $ 36 price of the IPO set on Wednesday.
The confusion was enough to worry regulators. The OTC Markets Group has called Zoom Technologies "caveat emptor" and warned traders to be aware of possible confusion between "unrelated entities," the stock exchange said in a statement. Zoom Technologies negotiates under the "ZOOM" symbol, while Zoom Video is negotiated as "ZM".