2 Zooms soared after the IPO: Did you buy the wrong one?
Investors on Thursday pounced on their first chance to buy a stake in Zoom Video Communications, but have mistakenly bought shares in the delisted Zoom Technologies.
Nasdaq is ready for the Zoom IPO, Thursday, April 18, 2019 in New York. The videoconferencing company is headquartered in San Jose, California. (AP Photo/Mark Lennihan)
NEW YORK (AP) -- One IPO, two stocks zooming higher.
Investors on Thursday pounced on their first chance to buy shares of Zoom Video Communications, the video-conferencing company that had its initial public offering of stock. It shares surged 72.2% from their IPO price of $36.
But others may have mistakenly bought Zoom Technologies, a company whose stock was trading for less than a penny in February and whose shares were delisted from the Nasdaq in 2014. Its total market value is less than one-thousandth of the more famous Zoom.
Shares of Zoom Technologies — ticker symbol "ZOOM" versus "ZM" for the ballyhooed IPO — surged as much as 124.5% in Thursday morning trading. Enthusiasm for the stock faded as the day went on — perhaps as more investors figured out the dual Zooms — and it ended the day up a more modest 10.2%.
Zoom Technologies had an even bigger leap of 1,100% in March, when Zoom Video Communications filed its IPO. Its shares closed that day at 6 cents.
