Zoom Video Communications Inc. (NASDAQ: ZM) shares fell on Thursday after some mixed news came out about the video teleconferencing service. While the platform has seen exponential user growth as a result of COVID-19, there are mounting security concerns. Of course, Zoom has seen incredible gains despite this bear market.
First the good news, the company had previously reported a maximum of 10 million users for its platform. This number has now grown to a whopping 200 million in March.
Bernstein analysts Zane Chrane and Michelle Isaacs posit that Zoom’s mobile app now has over 32 million daily active users, or 10 times more than there were a year ago.
According to founder and CEO, Eric Yuan, “To put this growth in context, as of the end of December last year, the maximum number of daily meeting participants, both free and paid, conducted on Zoom was approximately 10 million.”
Yuan further noted that Zoom usage has exploded over the past weeks, with more than 90,000 schools across 20 countries using its videoconferencing services.
At the same time, there are security concerns about the platform. A recent trend known as “Zoombombing” has taken off and is posing questions of how secure the platform actually is.
Earlier this week, the Federal Bureau of Investigation’s (FBI) Boston office warned Zoom users not to make meetings on the site public or share links widely. At that time, the FBI had received two reports of unidentified individuals invading school sessions, or Zoombombing.
Reuters reported that Elon Musk’s rocket company, SpaceX, has banned its employees from using the Zoom videoconferencing app. The company cited “significant privacy and security concerns,” days after U.S. law enforcement warned users about the security of the popular app.
Zoom Video stock traded down over 6% at $128.04 on Thursday, in a 52-week range of $59.94 to $164.94. The consensus price target is $112.65.
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