Shares were up over 72% at the end of their first trading day on Thursday, at $ 62 per share. Zoom ( ZM ) had priced his IPO at $ 36 per share. It was valued at just under $ 16 billion when markets were closed.
The company was Thursday's second highest profiled technology IPO, overshadowed in hype by social site Pinterest ( PINS ) . Pinterest had a solid view on its first day, ending 28% higher than the IPO award.
disappointed, but Zoom and Pinterest show that it is an appetite too high. Raised valued startup, "Matt Kennedy, an analyst at Renaissance Capital, told CNN Business." It was [growing] blazing fast and very profitable. It was not cheap when it cost its stock market listing, but despite the fact that the premium value was given, it increased even more today. "Kennedy said it is extremely rare that a company valued at $ 1
0 billion – Zoom was valued similarly before Thursday's IPO – to have such an increase in stock prices The last company to do so was Twitter in 2013.
Founded in 2011 by Eric Yuan, Yuan, who comes from China, came to the United States in 1997 after eight failed attempts getting a visa in about a year and a half, he succeeded in the ninth attempt, he said in an interview in July with GGV Capital, a venture capital firm.
Yuan said he was inspired to move to Silicon Valley after Having heard a speech given by Microsoft founder Bill Gates several years earlier, he said, looking back, there was a lesson in perseverance.When he came to the United States, he said, "I realized, wow, that is the first wave of internet revolution. I do not think I will miss it. " ] Yuan started writing code on the web conference company Webex, which was eventually acquired by Cisco in 2007 and is now known as Cisco Webex, before joining Zoom, he was executive vice president of engineering at Cisco.
Yuan says he had not planned to stay in the United States more than a few years, but eventually "the thought of returning was faded away."
Zoom must not be confused Zoom Technologies ( ZOOM ) a small Chinese wireless communications company, however, some investors may have confused the two: Zoom Technologies & # 39; share also gained a boost on Thursday, the stock had finished the day up 10%, even though it had been much higher earlier on the day, now worth $ 2.70 per share.