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What seems to have happened is that investors are investing in the wrong companies because of their similar names. Talk about Zoom Technologies working well with coronavirus from China’s spread, the ZOOM stock is soaring.
In a strange twist of events, Zoom Video Communications has also seen its stock fluctuate. The stock started up on Friday but is lower from Friday afternoon. The reason seems to be investors who confuse ZM shares and ZOOM shares.
Basically, investors who want to take out shares in Zoome Technologies have accidentally bought shares in ZM shares. That explains the price increase, as well as the decline when these investors realize their gaffe.
It is worth noting that this is not the first time that investors have mixed up ZM shares and ZOOM shares. A similar mistake was made when Zoom Video Communications held its IPO. As a result, shares in ZOOM saw a massive increase from investors who did not know the difference between it and the ZM share, reports Time.
With such a result, it does not look like investors will stop suspecting the two stocks for each other at any time.
The ZOOM share increased by 25.45% as of Friday afternoon. The ZM share climbed as high as 6.49% at the beginning of the morning. However, the stock is currently down 10.11% as of Friday afternoon.