In-demand teleconferencing firm Zoom hit by privacy fears
Zoom Video Communications has been one of the few stand-outs in the current market, with shares doubling and usage surging during the coronavirus pandemic, but now the company’s high profile has raised concerns about user privacy and security.
The teleconferencing company has become a favourite business tool as more employees work remotely, but concerns over privacy could complicate that popularity and expose it to new risks.
Zoom was recently sued by one user who claimed it is illegally disclosing personal information
Analysts remain positive on Zoom, which Morgan Stanley recently said had become “the default definition for videoconferencing.”
Bernstein wrote that it continues to recommend buying the stock as “paid user adoption has surged dramatically, although likely not to the same extent as free usage.”
Bernstein cited a recent survey it had conducted of US workers, which showed that “anywhere from 7% to 20% are paying for a Zoom subscription for personal use,” a trend that could add “a few hundred million” to full-year revenue.
