Is Zoom Video Communications Stock S&P 500-Bound?
Zoom Video Communications (NASDAQ: ZM) has been one of the most successful stocks of 2020. The video conferencing specialist has taken advantage of a unique set of circumstances that have lifted its business into the stratosphere, as companies that have shut down their central office locations are using Zoom's services to help workers collaborate with each other. The Zoom craze has gone beyond the enterprise community as well, with schools, government officials, and even churches and other gatherings turning to the platform in the era of social distancing and stay-at-home orders.
Many people believe that the rise in Zoom's stock is unsustainable. Yet despite arguments that many of Zoom's 300 million users won't ever be willing to pay a penny to use the service, the stock's market capitalization has now risen to nearly $50 billion. That's enough to gain entrance to one popular stock market index, and it raises big questions: Will Zoom get to join the S&P 500 Index (SNPINDEX: ^GSPC), and if so, when?
Image source: Zoom Video Communications.
Source Fool.com
