In Thursday trading, Zoom Video’s market capitalization grew to $140 billion, surpassing Exxon Mobil’s market capitalization of $138 billion; this is according to data from YCharts.com.
The nine year old videoconferencing company has seen its growth skyrocket, following the global Coronavirus pandemic which restricted movement and physical contact.
The restricted movement made schools and businesses rely heavily on the video conferencing software provided by Zoom for their day-to-day business.
Within the first few weeks of the lockdown, Zoom added over 100 million new users, which is an easy double on the initial number of users the app had.
The surge in users, as well as the need for an app that solves the problem of reduced physical contact, created a surge in the revenue of Zoom. The company’s stock recorded a growth as much as 658% this year alone.
Exxon Mobil, on the other hand, has had its fortune dwindling due to the coronavirus outbreak, restriction of movement, and the subsequent shutdown of the economy.
The oil company, whose creation dates back to John D. Rockefeller’s 1870 formation of Standard Oil, has lost 55% of its market value year-to-date.
The loss in market value is partly due to depressed oil prices, which was caused by events not limited to the shift to cleaner energy, and the global Coronavirus outbreak – which brought the transport industry, especially air travel, to a stand still.
Forbes reports that in the effort to reduce costs and improve efficiency during the pandemic setback, Exxonmobil would be laying off 1,900 workers from its US workforce.
In similar reports by Forbes, Zoom founder, Eric Yuan, has seen his fortune nearly double over the past three months – rising from $11 billion to $21.3 billion as of October 29.
Discussing on the chances of having the fortunes of both Zoom and Exxonmobil reversing to its pre-covid19 level, JPMorgan posits that a Covid-19 vaccine could bring about the reversal.
JPMorgan added on a report by Business Insider that a Covid-19 vaccine could lead to a swift return to normal life. This would reduce reliance on Zoom video chats and help boost demand for oil, and air travel, resulting in economic activity bouncing back.