Tech companies like Zoom benefited from the COVID-19 pandemic

Sep 1, 2020

While most industries were crippled by the COVID-19 pandemic, some found their revenues skyrocket in 2020. The tech industry is definitely one of those. Companies were forced to adapt to the everchanging world of business and find new ways to communicate with their clients.

The video conferencing company, Zoom witnessed its profits double in the second quarter of 2020, with over 300% growth, which is $663. Million for the last quarter. Compared to growth during the same period in 2019, customer growth grew by 458%.

Zoom’s shares were trading at $325.10 per share yesterday, and the company credits the large organization that uses it for videoconferencing following the lockdown caused by COVID-19. Zoom has seen a surge from schools as too as lessons resumed when September started. But unfortunately, it’s popularity damaged its infrastructure as well as reputation since it exposed many security flaws and allowed hackers to access sensitive information.

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As remote work became a necessity for most companies to survive the pandemic, many companies turned to Zoom to conduct their online conferences.

Zoom does not offer end-to-end encryption which means the company can access the video and audio for their meetings. Another feature that the company got scrutinized for its “attendee tracking” feature which allows the platform to check if its attendees have clicked away. Zoom commented that the allegations were unfair, saying,” “Globally, 2,000 institutions ranging from the world’s largest financial services companies to leading telecommunications providers, government agencies, universities, healthcare, and telemedicine practices have done exhaustive security reviews of our user, network and data center layers confidently selecting Zoom for complete deployment. We are in close communication with the UK Ministry of Defence and National Cyber Security Centre and are focused on providing the documentation they need.”

Other companies that benefited from the pandemic were:

• Amazon – with the commencement of the lockdown, many people turned to online shopping to stock up on necessary household supplies. As the lockdown proceeded many online shoppers started seeking out items for entertainment to keep themselves occupied, such as home improvement tools, toys for children, and hobby items.
• Facebook – Initially, social media networks that heavily depend on advertisers saw a decline in paid advertising since small businesses lowered their marketing budgets to the max. Despite that Facebook’s engagement levels rose in advertising impressions.
• Apple – Despite the fact that most of Apple’s stores around the world were forced to close down. Apple, however, managed to release new products and grow its online sales. Apple drew clients to its new products which seemed to highly attract a lot of people.