Apparently, folks who attended Zoom’s (NASDAQ:ZM) Zoomtopia event this week were made privy to a surprising announcement. As it turns out, Zoom is now collaborating with electric vehicle (EV) company Tesla (NASDAQ:TSLA). That’s not the only big news, however. Reportedly, the company is also teaming up with theater chain AMC Entertainment (NYSE:AMC). These news items are prompting a buying spree in ZM stock today.
Suffice it to say, this week’s Zoomtopia event was no ordinary conference. “We’re going to make it even easier for you to zoom from anywhere,” declared Nitasha Walia, Group Product Manager at Zoom.
Walia might not have meant that “anywhere” statement literally. However, Zoom and Tesla are now working together to make teleconferencing from a vehicle possible. According to Walia, Zoom’s video-conferencing feature “will come standard on all new Tesla models soon.”
This is an exciting development, but it does raise some questions. Will these Zoom-equipped vehicles require additional hardware to be installed? And exactly how soon is “soon” when it comes to this partnership?
What’s Happening With ZM Stock?
We don’t have the answers to all of these questions yet, but ZM stock traders are evidently taking a “buy now, ask later” approach today. Shares of ZM stock are rallying 11% early in the trading session, reaching the $80 level.
Financial traders aren’t only thinking about this Tesla tie-in, however. Investors have also learned that Zoom is partnering with AMC Entertainment. Together, the two companies will turn some U.S. AMC locations into “Zoom Rooms.”
Teleconferencing in a movie theater might seem fanciful, but it’s about to become a reality. Indeed, this likely happen next year. AMC and Zoom “currently anticipate launching Zoom Rooms at AMC in up to 17 major U.S. markets sometime in 2023.”
A typical auditorium size for a Zoom Room event is expected to accommodate between 75 and 150 seats, depending upon the theater. So, get ready for some big virtual meetings in movie theaters, as well as smaller meetings in Tesla vehicles. And while you’re at it, get ready for what may be a sustained surge in ZM stock.
On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
