What appears to have happened is that investors are putting stock in the wrong companies due to their similar names. Talk about Zoom Technologies performing well with the coronavirus from China spread have ZOOM stock soaring.
In a strange twist of events, Zoom Video Communications has also seen its stock fluctuating. The stock started out Friday heading up but is sitting lower as of Friday afternoon. The cause appears to be investors confusing ZM stock and ZOOM stock.
Basically, investors wanting to take out shares in Zoome Technologies have been accidentally purchasing shares of ZM stock. That explains the surge in price, as does the decline as those investors realize their gaffe.
It’s worth noting that this isn’t the first time that investors have mixed up ZM stock and ZOOM stock. A similar mistake was made when Zoom Video Communications held its IPO. That resulted in shares of ZOOM seeing a massive spike from investors that didn’t know the difference between it and ZM stock, reports Time.
With a track record like that, it doesn’t look like investors will stop mistaking the two stocks for each other anytime soon.
ZOOM stock was up 25.45% as of Friday afternoon. ZM stock climbed as high as 6.49% in early morning trading. However, the stock is currently down 10.11% as of Friday afternoon.