“Zoom” is a fairly common word, an onomatopoeia frequently seen in comic and children’s books and used on television to describe something moving at speed. According to Wikipedia, there have been four movies going by that title in the last 14 years alone, two TV series (one obviously a remake of the other), five albums, eight songs and a Danish “Eurodance” group all using the moniker. Oh, yea, and at least eight companies that go or have gone by it, including an Indian carsharing service, Japanese video-game and audio companies, makers of modems and automated retail kiosks, and a pair of defunct airlines. Oh, yea, and also a cloud-based video-conferencing platform that’s become rather popular among the shelter-at-home crowd, and also a “technology” company that hasn’t filed and financials in five years during which its pink sheets peaked at 10 cents. It’s those two the SEC would like to talk to you about.
Zoom Video, which provides videoconferencing services and trades under the ticker symbol “ZM,” is a key component for many businesses shifting to remote work during the coronavirus pandemic. That’s led to the company, which went public last year, to see a surge in users and stock price rise of more than 112% this year so far… However, traders have also bid up the much smaller Zoom Technologies, which has the ticker symbol “ZOOM”. Its stock is up more than 50% this month and nearly 900% this year.
SEC pauses Zoom Technologies trading because people think it’s Zoom Video [CNBC]