Chief Executive Officer of Zoom Video Communications, Mr. Eric Yuan has become richer by $4.2 billion in a matter of a few hours. Shares of his video-conferencing company increased as much as 26% to $410 in late US trading as it also reported a jump in quarterly revenue and suggested that the explosive growth will continue further.
Despite the pandemic, 2020 has been a year filled with opportunities for some of the richest people in the world. Amazon.com Inc’s Jeff Bezos’ net worth increased by $13 billion in one day in July, and Tesla Inc’s Elon Musk saw his net worth rise by $8 billion in 24 hours last month. Bezos and Musk crossed wealth levels of $200 billion and $100 billion respectively last week.
Coming back to Zoom, it has been one of the clearest beneficiaries of the COVID-19 pandemic, where educational institutions have turned to the application for teaching and learning purposes, and businesses have turned to the application for work during the pandemic.
The software maker reported on Monday that its sales has jumped 355% to $663.5 million in the three months through July 31. This was the second largest surge among NASDAQ 100 index members last month, only behind biotech firm Moderna Inc. Zoom has said that its sales will be as much as $2.39 billion in the fiscal year ending in January, which means that its revenue would almost quadruple in one year.
The founder of Zoom, whose net worth is mostly made up of more than 50 million Zoom shares, is one of the biggest gainers this year. Yuan, aged 50, was $12.8 billion richer as of richer as of Monday.
Early Zoom investors Li Ka-shing and Samuel Chan are also getting a wealth boost from the rally. Assuming that both men still hold their stocks, Li could be adding $2 billion in one day and Chen could be adding more than $650 million, if Zoom shares reach $410 at the next close, according to the Bloomberg Billionaires Index.