aster.cloud aster.cloud
  • /
  • Platforms
    • Public Cloud
    • On-Premise
    • Hybrid Cloud
    • Data
  • Architecture
    • Design
    • Solutions
    • Enterprise
  • Engineering
    • Automation
    • Software Engineering
    • Project Management
    • DevOps
  • Programming
  • Tools
  • About
aster.cloud aster.cloud
  • /
  • Platforms
    • Public Cloud
    • On-Premise
    • Hybrid Cloud
    • Data
  • Architecture
    • Design
    • Solutions
    • Enterprise
  • Engineering
    • Automation
    • Software Engineering
    • Project Management
    • DevOps
  • Programming
  • Tools
  • About
  • Tech

Zoom Is Now Worth More Than The World’s 7 Biggest Airlines

  • root
  • May 16, 2020
  • 2 minute read

Amid the COVID-19 pandemic, many people have transitioned to working—and socializing—from home. If these trends become the new normal, certain companies may be in for a big payoff.

Popular video conferencing company, Zoom Communications, is a prime example of an organization benefiting from this transition. Today’s graphic, inspired by Lennart Dobravsky at Lufthansa Innovation Hub, is a dramatic look at how much Zoom’s valuation has shot up during this unusual period in history.

The Zoom Boom, in Perspective

As of May 15, 2020, Zoom’s market capitalization has skyrocketed to $48.8 billion, despite posting revenues of only $623 million over the past year.

What separates Zoom from its competition, and what’s led to the app’s massive surge in mainstream business culture?

Industry analysts say that business users have been drawn to the app because of its easy-to-use interface and user experience, as well as the ability to support up to 100 participants at a time. The app has also blown up among educators for use in online learning, after CEO Eric Yuan took extra steps to ensure K-12 schools could use the platform for free.

Zoom meeting participants have skyrocketed in past months, going from 10 million in December 2019 to a whopping 300 million as of April 2020.

The Airline Decline

The airline industry has been on the opposite end of fortune, suffering an unprecedented plummet in demand as international restrictions have shuttered airports:

The world’s top airlines by revenue have fallen in total value by 62% since the end of January:

Airline Market Cap Jan 31, 2020 Market Cap May 15, 2020
Southwest Airlines $28.440B $14.04B
Delta $35.680B $12.30B
United $18.790B $5.867B
International Airlines Group $14.760B $4.111B
Lufthansa $7.460B $3.873B
American $11.490B $3.886B
Air France $4.681B $2.137B
Total Market Cap $121.301B $46.214B
Read More  SAP Intensifies Commitment In The Fight Against COVID-19

Source: YCharts. All market capitalizations listed as of May 15, 2020.

With countries scrambling to contain the spread of COVID-19, many airlines have cut travel capacity, laid off workers, and chopped executive pay to try and stay afloat.

If and when regular air travel will return remains a major question mark, and even patient investors such as Warren Buffett have pulled out from airline stocks.

Airline % Change in Total Returns (Jan 31-May 15, 2020)
United -72.91%
International Airlines Group -72.16%
American -65.76%
Delta -65.39%
Air France -54.34%
Southwest Airlines -56.35%
Lufthansa -48.08%

Source: YCharts, as of May 15, 2020.

The world has changed for the airlines. The future is much less clear to me about how the business will turn out.

—Warren Buffett

What Does the Future Hold?

Zoom’s recent success is a product of its circumstances, but will it last? That’s a question on the mind of many investors and pundits ahead of the company’s Q1 results to be released in June.

It hasn’t been all smooth-sailing for the company—a spate of “Zoom Bombing” incidents, where uninvited people hijacked meetings, brought the app’s security measures under scrutiny. However, the company remained resilient, swiftly providing support to combat the problem.

Meanwhile, as many parts of the world begin taking measures to restart economic activity, airlines could see a cautious return to the skies—although any such recovery will surely be a “slow, long ascent”.

 

Iman Ghosh

Article and infographic republished from the Visual Capitalist.

root

Related Topics
  • Airlines
  • COVID-19
  • Remote Work
  • Video Conferencing
  • Zoom
You May Also Like
View Post
  • Software
  • Tech
  • Technology

A New Smartphone Operating System That Puts Privacy First

  • March 10, 2023
View Post
  • Tech

Using IPv6 Unique Local Addresses For Private Connectivity In Google Cloud

  • January 24, 2023
View Post
  • Tech

Get Migrating In 2023: Join Our Upcoming Fireside Chat Featuring Forrester

  • January 24, 2023
View Post
  • Tech

Built With BigQuery: How To Accelerate Data-Centric AI Development With Google Cloud And Snorkel AI

  • January 24, 2023
View Post
  • Insights
  • Tech

What To Expect From CES 2023

  • January 4, 2023
View Post
  • DevOps
  • People
  • Practices
  • Tech

A Better Way To Pass Technical Interviews

  • January 3, 2023
View Post
  • Design
  • Solutions
  • Tech
  • Technology
  • Tools

Solving Internal Search Problems With Dialogflow

  • December 21, 2022
View Post
  • Tech

Best Practices For Managing Vertex Pipelines Code

  • December 10, 2022

Stay Connected!
LATEST
  • 1
    Kubernetes K8s.gcr.io Redirect: What You Need To Know As An Anthos Or GKE User
    • March 30, 2023
  • 2
    Oracle Helidon Taps Virtual Threads For ‘Pure Performance’
    • March 29, 2023
  • 3
    2022 State Of DevOps Report Data Deep Dive: Good Team Culture
    • March 29, 2023
  • 4
    Google Data Cloud & AI Summit : In Less Than 12 Hours From Now
    • March 29, 2023
  • 5
    A 5-Minute Tour Of The Fediverse
    • March 28, 2023
  • 6
    Bringing Observability To Cloud Security
    • March 28, 2023
  • 7
    How AI Can Improve Digital Security
    • March 27, 2023
  • 8
    Docker’s Bad Week
    • March 27, 2023
  • 9
    My First Pull Request At Age 14
    • March 24, 2023
  • 10
    AWS Chatbot Now Integrated Into Microsoft Teams
    • March 24, 2023
about
Hello World!

We are aster.cloud. We’re created by programmers for programmers.

Our site aims to provide guides, programming tips, reviews, and interesting materials for tech people and those who want to learn in general.

We would like to hear from you.

If you have any feedback, enquiries, or sponsorship request, kindly reach out to us at:

[email protected]
Most Popular
  • 1
    Introducing GPT-4 In Azure OpenAI Service
    • March 21, 2023
  • 2
    IBM And Fundación Ikerbasque Partner To Launch Groundbreaking Quantum Computational Center
    • March 24, 2023
  • 3
    Cleveland Clinic And IBM Unveil First Quantum Computer Dedicated To Healthcare Research
    • March 20, 2023
  • 4
    Verify POST Endpoint Availability With Uptime Checks
    • March 24, 2023
  • 5
    Oracle Cloud Infrastructure to Increase the Reliability, Efficiency, and Simplicity of Large-Scale Kubernetes Environments at Reduced Costs
    • March 20, 2023
  • /
  • Platforms
  • Architecture
  • Engineering
  • Programming
  • Tools
  • About

Input your search keywords and press Enter.