FB - Why Zoom Should Be Afraid of Facebook
Zoom Video Communications's (NASDAQ: ZM) meteoric rise might soon come to an end if Facebook (NASDAQ: FB) has a say.
The social media giant is going after Zoom with the launch of Messenger Rooms, a free videoconferencing platform that supports as many as 50 participants at one time. With millions of people sheltering in place and working from home becoming the new normal, whoever wins in the videoconferencing market stands to benefit over the long run. Even if Facebook doesn't make money off of it, the data it can glean can help influence future products.
It's early in the game for Facebook, which has stumbled before with new product launches and has failed to break into the enterprise market like Zoom has. But with a ton of cash, more engaged users because of the pandemic, and a stated goal of leading in video, the tech stock may have a shot at displacing Zoom.