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Zoom (ZM) stock is in the red. It happened after Google’s recent announcement that it is making its Meet free for everyone.
Zoom Video Communications Inc (NASDAQ: ZM) stock price has dropped. Sources say that the video communications company faced a loss of confidence in the markets. The Zoom (ZM) stock price fell by 6.53% yesterday. Zoom (ZM) stock was at $146.48 (−$10.24). This fall comes as Google has made a big entree into the video communications market. Today in the pre-market, ZM is stock is also down by %2.95.
Google Allows Everyone to Use Meet for Free
Google Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) has reportedly decided to make its videoconferencing platform free for all users. Meet as the platform is called had been restricted to educational and business accounts. The search engine giant has made it free for everyone. In a recent blog post, Google indicated that from May, the video conferencing platform will be available to just about anybody,
This has shaken things up in the video conferencing industry. Features such as scheduling, screen sharing, captions, and layouts are all available come next month. Besides, Google has added its GSuite to the package. GSuite and Meet will be free until September.
There will be a limit of 60 minutes on the meet platform. Before the announcement, Zoom was seen as the ultimate resource for video communications. All that changed as Google decided to enter the waters.
Zoom has had its fair share of security issues. Concerns had emerged when Zoom received at three lawsuits on “Zoom Bombing” and other issues. Zoom Bombing refers to the hacking of Zoom video conferences and the streaming of adult content.
Zoom (ZM) Stock Price Drops Because of Competition
This has made many users wary of the video conferencing platform of more than 200 million. The video communications company wasn’t known until the recent movement restrictions. Since then, its userbase has soared to previously unknown levels.
Facebook Inc (NASDAQ: FB) has also entered the video space. It recently announced the upgrade of its messenger application. This has put Zoom in a tight corner.
Many things are happening at the same time as far as Zoom is concerned. This may be because the company experienced sudden growth. While the company is struggling to get used to the new circumstances, others want a piece of the pie. This has made it one hell of a ride for the executives of Zoom.
All companies that have achieved great things have gone through similar crises. This may be the time that the Video Communications company may seek to redefine itself.
Video communication isn’t new. We have had variants of video communications services litter the tech space for a bit now. The movement restrictions have made video communications to become a necessity. Life must go on.
Zoom’s usage also comes with its limits. A time limit of 40 minutes for all video calls exists. Meet calls will be limited to 100 people. This is the same as Zoom can offer. Messenger and Skype both have a 50-person limit.
Software companies will continue to provide improved video communications. We will see improvements in such business models. The chaos of the COVID-19 pandemic has provided fuel for innovation. Companies like Zoom have to brace up or be left behind.