Before the security crisis in Zoom appeared, it was understood that the executives sold millions of dollars of shares when prices peaked.
Managers of Zoom Video made millions of dollars in profits by selling company shares while prices peaked.
Eric Yuan, the company’s founder and CEO, only sold his $ 38 million stake in 2020. According to SEC records, Yuan sold 10.5 million dollars in January, 12.5 million in February and 15.5 million in March. Zoom, the company’s video application, has been popular since January, when the coronavirus epidemic began, and has become an app used by the whole world.
Not only the use of the zoom application, but also the prices rose like a rocket, and it increased from $ 68 on January 1 to $ 160 as of March 23. The share price at the time of the zoom application when it is published is around $ 120.
Security concerns in Zoom
However, some security concerns have undermined Zoom’s rising fame. It has become very common recently that some people who use the “Zoombombing” application, which is used to enter meetings in Zoom without permission, and share unwanted photos and messages. Researchers have also revealed that the company has provided users with information to third parties, including Facebook.
Some users in the U.S. even sued the company for what happened. On the other hand, Zoom explained that he regarded the failure of user data to be protected as “bad handling” and an error.
Yuan was not the only sales manager
Regarding the sale of shares, Yuan was not the only top-selling executive. Santiago Subotovsky, one of the directors, sold $ 16.8 million in March, while financial specialist Kelly Steckelberg sold a total of $ 3.4 million since the beginning of this year.
However, the most aggressive seller here seems to be Janine Pelosi, the chief marketing officer of the firm, which has sold 13,046 Zoom shares every two weeks since October 28. Pelosi made cash between $ 824,000 and $ 1 million each time.
When an explanation about the sales was requested, the spokesperson said that their sales were pre-planned transactions and were made automatically by the system. The spokesperson also stated that there are still significant amounts of shares among company executives and board members. In the statement made, it is also stated that all transactions regarding Yuan are not sales and donations are made due to humanitarian situations.