Zoom has surpassed Lyft as the most valuable of all the tech companies to go public this year. The milestone comes after just three days of trading for Zoom, which surged 5 percent on Tuesday (April 23) to close trading with a market capitalization of $17.7 billion. The stock increased 72 percent in its debut last week, then jumped another 6 percent on Monday (April 22), according to CNBC.
For its part, Lyft fell 1.1 percent on Tuesday, and is now valued at $17.2 billion. Pinterest, which also hit the market last week, is now worth $13.7 billion.
Zoom’s rise might be a surprise to some, especially since Pinterest and Lyft raised money at much higher valuations in the private market, and are bigger when it comes to revenue. Yet, it’s important to note that Zoom has been growing more rapidly than its rivals. In fact, it more than doubled its sales last year, and, unlike many of the other companies that have gone public, is already profitable.
The news comes as it has been a bumpy ride for Lyft, as Uber approaches its own IPO. Since its debut on March 29, Lyft’s stock price has fallen 16 percent from its $72 IPO price. However, the reasons for the drop are not immediately clear. As PYMNTS reported, there is confusion about how to measure and compare the two ridesharing companies, each of which use differing metrics for certain important financials, including gross bookings.
The reasons are not impossible to discern, though. According to a new PYMNTS column from Karen Webster, pundits have attributed the drop to overzealous investors who may have since sobered up, perhaps even more quickly after taking a good look at the financial performance of the global ridesharing Goliath that defined the space. That look has many of those same pundits now worrying about how to value both adequately.