Zoom Video Communications Inc with a rally in the last hour of trading yesterday closed with a record market value above $50 billion for the first time.
The maker of video conferencing software rose 9.7% to $179.48, giving it a market value of $50.6 billion, bigger than tractor maker Deere & Co. and pharmaceutical company Biogen Inc. While there was no clear reason for the steep rise, technology stocks were the best performing group in the S&P 500 Index, and investors may be positioning ahead of Zoom’s earnings report expected on Tuesday.
Zoom has recorded gains of more than160% this year as investors bet that soaring usage amid the coronavirus pandemic would translate into long-lasting revenue growth.
The stock now trades at a staggering 55 times estimated revenue compared with an average of 7 times for software and services stocks in the S&P 500.
Zoom’s founder and chief executive officer, Eric Yuan witnessed his net worth rise more than$800 million on Friday to $9.3 billion, according to the Bloomberg Billionaires Index.
