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- Zoom Video Communications, a $1 billion startup, filed for its much-anticipated IPO on Friday.
- Zoom Technologies, a completely unrelated company, saw its shares spike 1,100% in the aftermath.
- That company trades under the ticker symbol "Zoom," which likely led to some confusion by trigger-happy investors.
- Zoom Technologies appears to be a mostly-defunct telecommunications company that hasn’t reported earnings since 2011, and trades as an over-the-counter stock.
On Friday, hot $1 billion startup Zoom Video Communications filed for its long-awaited IPO.
And in the immediate aftermath, Zoom Technologies, a $150,000 company which has nothing to do with the other Zoom, saw its stock spike up as high as 1,100%.
Zoom Technologies appears to be a mostly-defunct telecommunications company, and hasn’t reported revenue since 2011. It trades as an over-the-counter stock, and was trading at $0.005 a share at market close on Thursday, giving it a market cap of about $15,000.
But it uses the ticker symbol "Zoom," and has the added benefit of a Google Finance description that bills it as a "communications equipment company." That may have fooled trigger-happy investors who wanted to get in on Zoom, the startup — at the closing bell on Friday, this other Zoom was trading at $0.60, giving it a market cap of about $180,000.
Zoom Technologies went public in 1990 when it was valued at $92.36 per share, according to Google Finance data. The company once sold wireless communication products in the US, but it officially filed to terminate its listing with the Securities and Exchange Commission in 2015.
The other Zoom, the one more formally as Zoom Video Communications, said in its S-1 that it intends to list on the Nasdaq with the ticker symbol "ZM." This Zoom could start trading as soon as April.
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Source: Business Insider – bpeterson@businessinsider.com (Becky Peterson)