Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.
Zoom (ZM) stock price has risen in the last trading session as Facebook introduced Messenger Rooms that is a drop-in video chat,
Zoom Video Communications Inc (NASDAQ: ZM) stock prices rose by 0.46% to $167.91 in the last trading session. The rise of Zoom stock price occurred as Facebook introduced Messenger Rooms globally. As at the time of filing this report, Zoom (ZM) stock price in the pre-marker was slightly up (+0.05%).
Facebook Inc (NASDAQ: FB) wants to take back its market share in video chat. That is obvious. Messenger rooms is a drop-in video chat feature. Rooms can be created by users’ friends. Users are notified of such actions via the newsfeed or push notifications. each room has a maximum size of 50 people.
Zoom and Facebook Competition
Users will also soon be able to initiate calls from within Facebook-owned Instagram, DMs, and even WhatsApp. This will be one of the few shared features that the social networking company is implementing. Users can initiate calls from within Messenger and their Facebook Apps.
These efforts come as the shelter-in-place restrictions continue on a global scale. The net effect of these restrictions is more remote interactions. The increase in video communications for various purposes is as a direct result of this.
Facebook CEO Mark Zuckerberg has indicated that the rise in video communications has risen over 1,000% in recent weeks. He made these allusions during a recent earnings call.
Certain features that encourage engagement are missing. Features such as screen sharing are missing from Messenger rooms. The new video calling features won’t hurt rising new stars in the video realm such as TikTok and Zoom. Messenger Rooms though is an attempt to get Facebook’s foot in the door.
As benign as such an attempt to compete may seem, it should not be seen as the end. Facebook has what the other Video calling apps don’t have: cash. Facebook can (and will) spend itself into the video market. The issues that it is facing, for now, have more to do with the anti-trust movement than innovation.
Zoom is not a social network. The new users though seem to think so. Many corporate organizations have gained massively from its enterprise features. Private users see it as a way to catch up with friends and family.
Zoom has had its share of issues. Privacy pundits have criticized its data sharing with companies like Facebook. The video communications company is even facing two lawsuits in California over the same issue. The good thing is that such crises are necessary for further innovation to occur.
Facebook has had more than its fair share of crises. The social network has developed a thick skin to the various probes, complaints, and so on.
Such situations come with the turf. The big question, however, will be if Facebook creates a competitor (as it is doing) or if it goes for an acquisition. We have already seen Mark acquire Instagram and WhatsApp. If the Messenger Rooms strategy fails, then we might be looking at such a scenario.