Why Zoom Stock Popped Today

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What happened

Shares of Zoom Video Communications (NASDAQ:ZM) rose 5.7% on Tuesday after the cloud technology company announced an impressive sales milestone for its business phone system. 

So what 

Zoom said it sold one million Zoom Phone seats in the first two years since the product’s launch. “We are excited to see this level of uptake in such a short timeframe,” Graeme Geddes, head of Zoom Phone, said in a press release. “Our customers have come to rely on Zoom to deliver amazing video and audio for them at scale, and they’re seeing tremendous value in consolidating and modernizing their telephony services with us as well.”

Zoom Video Communications’ stock climbed on Tuesday on booming phone sales. Image source: Getty Images.

Zoom Phone is an important piece of Zoom’s unified communications platform, which integrates video, chat, meeting, and webinar tools across desktop and mobile devices. Customers seem to appreciate Zoom Phone’s reliability, security, and scalability as well as its simplified pricing plans.

Now what

Zoom Phone’s success shows that Zoom is more than just a one-trick pony. Zoom is rapidly becoming a vital cloud-based communications platform for businesses of all sizes. This, in turn, is helping to expand the company’s market opportunity and fuel its growth. It’s also likely to help Zoom deliver even more gains to its investors in the months and years ahead.