Zoom founder Eric Yuan has transferred around 18 million shares last week in a multi-billion dollar series of "gifts", following a spike in shares over the past year due to an increasing number of people using the video conferencing service.
More Than a Third of Stake Donated
According to the filing that was made late Friday, Yuan transferred an estimated 40% of his stake at Zoom Video Communications that were reflected in the filing as gifts.
The filing further showed that the transfers were conducted in two tranches with around 9 million shares each. Based on Friday's closing price, the shares were valued at around $6 billion.
A Zoom official confirmed the filing, stating that Yuan's donations were "made in accordance with the terms of Eric Yuan and his wife's trusts."
Yuan, who is also the company's CEO, has three children but it remains to be seen whether any of the shares he transferred were under his children's names or other charitable institutions.
Did Yuan 'Rush' His Stake Transfers?
Since news of the billion-dollar stake transfer emerged, analysts have expressed their thoughts about Yuan's recent move and how the market will be affected with the latest development from one of the world's rising billionaires.
Edward Moya, who works at trading firm Oanda, said that Yuan's move will "raise some eyebrows" among investors who are watching Zoom's steady rise to the top.
Since the beneficiaries of Yuan's transfer have yet to be named, Moya said that investors will likely "be nervous" about what some trading analysts think could be a "rushed" move from the billionaire whom Forbes estimates to have a fortune of $13.7 billion.
On the other hand, Yuan isn't the only Zoom stakeholder who recently started transferring stocks. Hong Kong billionaire Li Ka-shing also transferred some of his Zoom stakes to his son.
Hours after news of Yuan's stake transfer hit the newsstands, Zoom stocks plunged by 1.3%, seemingly echoing Moya's comments about some investors eager to know which people or groups were the recipients.
What's Next in Zoom Boom?
Zoom stocks surged to nearly 400% last year, but recently, analysts have had mixed thoughts about whether the company can retain the momentum as lockdowns ease and people return to their normal office routines.
So far, the stock has dipped 7.8% this year, but upcoming improvements could tip the balance back in Zoom's favor.
Last week, the company announced that it is planning to release a new feature for automatic closed captioning sometime this fall. Free accounts will also get the new service.
Before the latest reveal, paid Zoom accounts were offered live transcription running on AI technology. A support page for the video conferencing service states that Live Transcriptions are only available in English at this point.
Last month, Zoom also unveiled new audio and visual effects to bring more life and fun in virtual meetings.
While most students using Zoom have expressed excitement for the new features, some professors are worried that some students may "abuse" the features when they get bored during the class.
