Zoom Video Shares Up Amid Microsoft Teams Outage, Travel Restrictions

Zoom Video shares rose as Microsoft's competing product, Teams, went down temporarily. A media report also said Zoom might benefit because travel restrictions due to the coronavirus may prompt people to use videoconferencing.
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Zoom Video Communications (ZM) - Get Report shares jumped after Microsoft’s (MSFT) - Get Report competing service, Teams, on Monday morning went down temporarily.

The San Jose, Calif., company offers videoconferencing, online meetings, chat and mobile collaboration. 

Microsoft’s Teams service failed when an authentication certificate expired, Microsoft said in a tweet. The company began a fix at 11:20 a.m. Eastern, and the service was restored by noon Eastern for most users, according to the Verge.

“We’ve addressed an access issue that some customers may have experienced, and service is fully restored,” a Microsoft spokesperson said in an emailed statement Monday afternoon.

The spread of the coronavirus also may be boosting Zoom, the Motley Fool reports. That’s because the travel restrictions resulting from the expanding disease could lead to increased usage of videoconference calls.Microsoft officials weren’t immediately available for comment.

The spread of the coronavirus also may be boosting Zoom, the Motley Fool reports. That’s because the travel restrictions resulting from the expanding disease could lead to increased usage of videoconference calls.

Zoom Video also said it would report fiscal-fourth-quarter 2020 earnings on March 4. When it released third-quarter earnings in December, Zoom Video exceeded its guidance for the quarter and increased its full-year guidance. 

Zoom forecast revenue of $175 million to $176 million for the fourth quarter ended Jan. 31 and $609 million to $610 million for the year as a whole.

For the fourth quarter it forecast adjusted operating profit of $17 million to $18 million and adjusted earnings per share of 7 cents a share. 

And for the year it estimated adjusted operating profit of $67 million to $68 million and adjusted earnings per share of 27 cents.

At last check, Zoom’s stock traded at $86.01, up 13%. Zoom priced its initial public offering last April at $36, and through Friday's close it had more than doubled. 

The author of this story owns Microsoft shares.