Zoom Updating Messaging Platform, Could Compete With Slack: Report

Zoom Video Communications ZM has seen huge growth in 2020 as one of the company’s reaping the benefits of the work from home shift.

What Happened: A report from The Information says Zoom has hired a “significant number of engineers” to provide an upgrade to its current messaging functions.

Zoom currently offers a basic text messaging system within its video calls. The development would put Zoom into competition with other companies that help teams collaborate, especially from outside an office setting.

Why It’s Important: Zoom would compete with Slack Technologies WORK, of which it has a working relationship with dating back to 2015. Zoom would also compete with Teams, an offering from Microsoft Corporation MSFT.

Slack reported 130,000 paying customers in the recent quarter. Zoom reported over 370,000 customers (of 10 or more people) in the recent second quarter, a 458% year over year increase.

Price Action: Shares of Zoom traded up 2% on Tuesday to $410.94 and are up over 490% in 2020. Shares of Slack are up 14% in 2020.

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