Attention, investors: Better double-check which Zoom you're trading and we don't want to tell you again... and again.
The SEC suspended trading of Zoom Technologies, a small Chinese tech company often confused with Zoom Video Communications (ZM) - Get Report, the red-hot videoconferencing stock that's surged in price throughout the coronavirus pandemic.
Shares of the much smaller Zoom were up 23% on Thursday when the SEC stepped in to suspend trading. The agency cited "concerns about investors confusing this issuer with a similarly named NASDAQ-listed issuer, providing communications services, which has seen a rise in share price during the ongoing COVID-19 pandemic."
Zoom Video Communications, which offers virtual conferencing software, has seen an unprecedented surge in usage this year as workers stay home en masse to combat the spread of coronavirus. And its stock price has surged to match, with shares up more than 100% since the beginning of this year.
As for the smaller Zoom, its shares more than doubled over two trading sessions last week alongside a spike in the trading activity of its larger namesake.
The misunderstanding has happened before: Shortly after Zoom's IPO last April, Zoom Technologies' stock soared 56,000% in 30 days, partly fueled by confusion with Zoom Communications.
Zoom Video Communications is up over 105% YTD and is being widely used by companies who are forced to work from home and for personal use for those who are quarantined during the coronavirus pandemic.
TheStreet and Sports Illustrated have speculated whether the NFL and Zoom Video could come together for a partnership to broadcast the NFL Draft after the Las Vegas draft was canceled.