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Zoom’s videoconferencing service is deepening its integral role in life during the coronavirus pandemic as tens of thousands more businesses and other users pay for subscriptions to get more control over their virtual meetings. (AP Photo/Mark Lennihan, File)

Zoom market value tops Boeing, Starbucks as stocks surge

Zoom’s videoconferencing service is deepening its integral role in life during the coronavirus pandemic as tens of thousands more businesses and other users pay for subscriptions to get more control over their virtual meetings. (AP Photo/Mark Lennihan, File)

A Zoom call has become an integral part of daily life during the coronavirus pandemic. On Tuesday, Wall Street acknowledged as much by boosting the videoconferencing company’s market value above that of more established companies such as Citigroup, Boeing and Starbucks.

Zoom’s shares have soared in 2020 as the popularity of its video conferencing service has grown during a time of widespread lockdowns aimed at stemming the spread of the coronavirus pandemic. (Photo: Bloomberg)

Zoom shares rose 40.8 per cent to US$458.08, pushing its market value to more than US$129 billion, after the company reported explosive growth during the second quarter as more people paid for subscriptions, giving them more control over virtual meetings. Zoom’s revenue more than quadrupled from the same time last year to US$663.5 million and profits blew past Wall Street forecasts.

At the current level, Zoom’s market value exceeds the combined value of two storied automakers, General Motors and Ford, and is more than double the aggregate value of the nation’s four biggest airlines.

The company is one of the key beneficiaries of the virus pandemic as more people log on to its videoconferencing service to work from home.

In a show of confidence, Zoom raised its revenue projection for its fiscal year ending in January to nearly US$2.4 billion, up from roughly US$1.8 billion predicted in early June. The forecast is now more than double the US$910 million revenue that Zoom had anticipated as it began its fiscal year.