Why Zoom Stock Surged 13.75% Today
Shares of Zoom Video Communications (NASDAQ: ZM) climbed by nearly 14% on Monday. The video conferencing company released some sought-after software updates, and investors are looking forward to its upcoming earnings results.
Zoom rolled out a security update over the weekend that will provide stronger encryption for video calls to its paying customers. While some organizations, such as schools, will also receive these security features, most non-paying users will not.
The strategy could drive more free users to upgrade their accounts. That, in turn, could help to fuel Zoom's already impressive sales growth. The technology company's revenue soared 88% to $622.7 million in fiscal 2020, which ended on Jan. 31.
Source Fool.com
