Why Zoom Video Communications Stock Popped 10% Today
Shares of videoconferencing star Zoom Video Communications (NASDAQ: ZM) closed 10% higher after a busy trading day Tuesday. The big move came after The Wall Street Journal reported that company founder and CEO Eric Yuan and his wife have collectively "transferred" shares that they own, representing 40% of their recent ownership stake in the company, "to unspecified recipients."
Why are investors taking this as good news? Well, at the least, it seems the CEO and his wife didn't sell the shares. Judging from recent experience, that would probably have been taken as bad news. Rather, the Journal reports that the transfers were "gifts ... from two trusts for which Mr. Yuan and his wife are co-trustees."
The Journal added that, according to a Zoom spokeswoman, "the distributions were made in accordance with the terms of Eric Yuan and his wife's trusts, and are consistent with the Yuans' typical estate planning practices."
Source Fool.com
