Zoom Turns Lower as Facebook Rolls out Free Video Calling
By Yasin Ebrahim
Invesing.com - Zoom has been riding a wave of popularity, led by a surge in demand for video chat amid lockdown measures worldwide, and its growth has not gone unnoticed as Facebook (NASDAQ:FB) launched its group video chat feature "Messenger Rooms."
Zoom Video Communications (NASDAQ:ZM) reversed gains and fell 3.8%, while Facebook rose 2.4%.
Messenger Rooms will support free video calling for up to 50 people with no time limit, compared with Zoom's platform, which supported up to 100 people to video chat for free, but with a 40-minute time limit.
Facebook said Messenger Rooms will provide a digital platform to "host celebrations, gather a book club or just hang out on the couch with friends."
Zoom has racked up more than 200 million so far from 10 million at the end of last year.
Zoom recently recently faced a lawsuit alleging the company provided user data to Facebook without permission or notification.