In another winning week, shares in Zoom Video Communications ended on a sour note after Facebook disclosed plans for a competing video chat product.
The news sent Zoom shares tumbling, eventually closing with a decline of 6.1 per cent on Friday. Still, the stock managed to gain more than 5 per cent for the week, fuelled by a surge in users who have embraced the video-conferencing software for work and socialising while confined to their homes.
Zoom’s shares have jumped more than 130 per cent this year, vaulting the company into the ranks of some of the most valuable US companies. At $44 billion (Dh161.5bn), Zoom’s market capitalisation is now bigger than nearly three-quarters of the companies in the S&P 500 Index.
Investors have flocked to Zoom with much of the world home-bound to combat the spread of the novel coronavirus. On Wednesday, Zoom reported a 50 per cent jump in users in the past three weeks.
Along with Zoom’s success has come headache, with the San Jose, California-based company facing backlash over privacy and security concerns that prompted an apology from chief executive Eric Yuan and moves to make the platform more secure.
In a challenge to Zoom, Facebook said the goal of its new video platform, which will allow as many as 50 people per chat, was to offer users a more social and less corporate feel than what’s currently available.
While Zoom already faced plenty of competition before Facebook joined the conversation, the news served as a reminder that the stock had a lot of optimism baked in as several analysts have recently warned.
JP Morgan on Thursday said that the current surge in users won’t necessarily result in a similar increase in revenue as many participants are using a free version. Last week, BTIG said Zoom is priced to “perfection” and warned of risks from security concerns.
Zoom’s valuation multiple has soared this year along with its share price. The stock is trading at around 29 times revenue over the past 12 months. That’s more than four times the average of the 96 companies in the S&P North American Technology Software Index.
Company info
Company name: Entrupy
Co-founders: Vidyuth Srinivasan, co-founder/chief executive, Ashlesh Sharma, co-founder/chief technology officer, Lakshmi Subramanian, co-founder/chief scientist
Based: New York, New York
Sector/About: Entrupy is a hardware-enabled SaaS company whose mission is to protect businesses, borders and consumers from transactions involving counterfeit goods.
Initial investment/Investors: Entrupy secured a $2.6m Series A funding round in 2017. The round was led by Tokyo-based Digital Garage and Daiwa Securities Group's jointly established venture arm, DG Lab Fund I Investment Limited Partnership, along with Zach Coelius.
Total customers: Entrupy’s customers include hundreds of secondary resellers, marketplaces and other retail organisations around the world. They are also testing with shipping companies as well as customs agencies to stop fake items from reaching the market in the first place.
Panipat
Director Ashutosh Gowariker
Produced Ashutosh Gowariker, Rohit Shelatkar, Reliance Entertainment
Cast Arjun Kapoor, Sanjay Dutt, Kriti Sanon, Mohnish Behl, Padmini Kolhapure, Zeenat Aman
Rating 3 /5 stars
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Match info
Manchester United 1
Fred (18')
Wolves 1
Moutinho (53')
Points Classification after Stage 1
1. Geraint Thomas (Britain / Team Sky) 20
2. Stefan Kueng (Switzerland / BMC Racing) 17
3. Vasil Kiryienka (Belarus / Team Sky) 15
4. Tony Martin (Germany / Katusha) 13
5. Matteo Trentin (Italy / Quick-Step) 11
6. Chris Froome (Britain / Team Sky) 10
7. Jos van Emden (Netherlands / LottoNL) 9
8. Michal Kwiatkowski (Poland / Team Sky) 8
9. Marcel Kittel (Germany / Quick-Step) 7
10. Edvald Boasson Hagen (Norway / Dimension Data) 6
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Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
