Facebook pops, Zoom drops on Facebook announcing ‘Rooms’ video-chat competitor (FB, ZM)
- Facebook on Friday announced “Messenger Rooms” — a video conferencing platform that allows up to 50 people to join a single room and interact with each other.
- The new product offering will be a direct competitor to Zoom Video and Google Hangouts, two products that have seen a surge in demand as more people work from home during the coronavirus pandemic.
- News of Rooms prompted a swift 12% decline in shares of Zoom, while Facebook shares were up more than 2% in Friday afternoon trading.
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Rooms will directly compete with Zoom Video,Google Hangouts, and Microsoft Skype, three popular video conferencing platforms that have seen a surge in demand as millions across the globe are under stay-at-home orders.
Prior to today’s Facebook announcement, shares of Zoom were trading at all-time highs on news that the company had surpassed 300 million daily users and was going to be included in the Nasdaq 100 Index …continued .
[Source: Business Insider]