The Curious Case Of Zoom Technologies Inc. Stock

I'm not licensed to give anyone advice about anything much less financial investments. I don't own any of this stock. You shouldn't buy it based on this blog, and anything else I've failed to disclose insert here: ___________________. I just happen to find the following very interesting because it's a good example of how dumb we are sometimes. 

People always talk about how the stock market is just taking advantage of stupid people. Maybe that's harsh but generally speaking, I feel like big time stock people are always talking about Information Asymmetry and reading between the lines and blah blah blah. You hear people talk like that and think "why not me?" and then a story drops in your face that only reinforces that theory more. This might be one of those times. 

As you're aware, corona has made every class go virtual, and with it comes emerging e-learning software company Zoom. 

Fortunately for all you stock hounds, Zoom is listed publicly. It's symbol is ZM and is currently trading at $162.85 with a market cap of 44.9B. That's pretty big for an education-based vertical. 

It's last month: 

Makes sense considering everyone has to use their product. So if you had the money and were smart enough to invest in ZM good for you. Hopefully you got in at the right time. 

But why is the symbol ZM? Shouldn't it just be ZOOM? 

And that's where the story turns. ZOOM is already taken by a much, much smaller company that has absolutely NOTHING to do with e-learning. It's a Chinese manufacturer that makes phone parts. But don't let that stop Joe Public from driving up it's share price. 

(Bloomberg) -- Shares of Zoom Technologies Inc., a Beijing-based maker of mobile phone components with a market value of just $18 million, have more than doubled this week as investors bet on companies that could benefit if coronavirus fears push people to stay at home.

Remember market cap for ZM? It was 44.8 billion. ZOOM here was about $18 million and now it's at about $44M. Absolutely insane swing over a naming convention. 

For those of you that prefer pictures: 

From $3.50 to $35.01 in less than a month all because it sounds like the company that does the e-learning. It's moments like this that make me feel so dumb for not anticipating the herd moving with such drastic measures. Zoom and Zoom. Keep your head on a swivel guys and good luck to the poor souls who bought in the $30's. Suckers like you don't come often so don't be afraid to stop in the Barstool Chicago store on your way home. Special Offer = free shipping on all orders over $10,000. Bombs away.