Zoom is waving goodbye to its era of dominating the video conferencing industry and has now dropped out of the Nasdaq100 index.
👉 Background: Back in 2020, when people were forced to lock down, Zoom became an overnight success. In fact, it jumped from 10 million users in 2019 to over 300 million by the end of 2020.
👉 What happened: During 2020, shares of Zoom jumped almost 400%. But 3 years later, Zoom is waving goodbye to its era of dominating the video conferencing industry. In fact, Zoom has now dropped out of the Nasdaq100 index.
👉 What else: Dropping out of the Nasdaq100 index is likely going to hurt Zoom's ego, but also its share price.
💡When a company's stock joins a major index, it's like catching a big wave in the ocean of the stock market.
💡For Zoom, being part of the Nasdaq100 meant increased visibility and a lot more trading volume and liquidity.
💡That's because many index funds specifically invest in Nasdaq100 companies. And that means once you're out, index funds will sell their holdings in the company. So, dropping out of the Nasdaq 100 can potentially affect Zoom's investor base and share price.
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