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Why Zoom Video Stock Jumped Today

By Chris Neiger - Feb 5, 2021 at 12:23PM

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Investors appear to be optimistic about Zoom's new initiatives.

What happened

Shares of Zoom Video Communications (ZM -5.58%) rose today on seemingly no company-related news. But investors may be having a delayed reaction to the company's announcement on Wednesday that it's expanding some of the features for its Zoom Rooms service. 

The tech stock was up by as much as 6.4% this morning and had gained 6% as of 12:04 p.m. EST. 

So what 

The company said on Wednesday that it was launching Zoom Rooms "Everywhere Workforce" initiatives that will help companies safely bring back workers into offices. Zoom Rooms is the company's conference room video service. 

Line graphs and bar charts on a blue background.

Image source: Getty Images.

For example, Zoom said that it's expanding Zoom Rooms to offer new services including a virtual receptionist/kiosk mode. The kiosk mode will allow people entering a building lobby to connect to a receptionist virtually, for the safety of both the worker and the visitor.

Additional new initiatives include pairing a Zoom Room with a user's personal device (instead of using shared in-room technology in a conference room), air quality monitoring for meeting rooms, and real-time tracking of how many people are in meeting rooms (to ensure social distancing). 

Zoom said in the press release, "Whether it's in an office, co-located space, remote location, or at home, Zoom's platform enables organizations to put employee health and safety at the center of their strategy."

Now what 

Zoom investors may be optimistic about this latest announcement from the company because it shows that Zoom is preparing for companies to move their workers back into the office. With two COVID-19 vaccines already available in the U.S., and another one potentially on the way, Zoom is trying to ensure that companies that have relied heavily on its technology during the height of the pandemic will continue to do so once people start returning to offices. 

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Zoom Video Communications Stock Quote
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ZM
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