$ZOOM Shares Double Amid Coronavirus Concerns. But Investors Mistakenly Bet on the Wrong Company

Shares of Zoom Technologies Inc., a Beijing-based maker of mobile phone components with a market value of just $18 million, have more than doubled this week as investors bet on companies that could benefit if coronavirus fears push people to stay at home.

There’s just one problem — its ticker is ZOOM, but investors may be thinking of California-based Zoom Video Communications, known for its online video-conferencing platform that could help people work and study from home. That company’s ticker is ZM, and its shares have risen about 11% this week amid widespread market turmoil.

Shares of $ZOOM are up 50% today because video conferencing is expected to benefit from the coronavirus.

One small problem. It’s wrong company. Zoom is $ZM.$ZOOM has been out of business for years.

Score one for efficient markets!

cc @asymmetricinfo

— Eddy Elfenbein (@EddyElfenbein) February 27, 2020

It’s not the first time the wrong Zoom has surged, with Zoom Technologies shares soaring after Zoom Video’s IPO last year.

Looks like $ZOOM is spiking on hype about $ZM (the video conferencing company). This also happened around the time of the $ZM IPO.

— Ankit Panda (@nktpnd) February 27, 2020