Part 1 of Aberdeen’s Video Conferencing blog series examined several videoconferencing software platforms. We found that Zoom has been the leading this pack through March and early April, garnering the vast majority of user traffic on educational webpages and webpages referencing downloading / installing a technology.
In Part 2 of this series, we will show how Aberdeen’s Behavioral Technographic data identifies issues with the given technology that may impact the value of the company prior to the market’s response to the problem.
It’s All About Usage
Zooms stock has seen a meteoric rise in value, more than doubling since January 1st. A topic that has subsequently been getting a lot attention is if the stock value is correct. One of the biggest concerns has been engagement: Are the users who have downloaded and installed zoom actually using it?
Our data supports the proposition that these users are in fact using the technology. We find a large increase in the number of users reading articles resolving to ‘tips and tricks’ and different ‘how to guides’, which coincides with the increase in those referencing how to download / install the software.
Simply put, these new users are learning how to use zoom because they’re using it.
Figure 1: New Zoom Users Learning How to Use It
Security Issues Abound
Like so many other consumer products that are free and easy to use, security issues have plagued Zoom in recent weeks. The flood of users hopping onto Zoom were unaware of the privacy features that needed to be enabled for enhanced security, and the resulting “bombings” followed. The stock value quickly adjusted to these events, and Aberdeen Behavioral Technographics shows further evidence of this (Figure 2).
Zoom users were becoming increasingly concerned about its security issues on Sunday, March 29th. There was a 149% spike in the number of users reading articles about with Zoom’s security issues. The following week of trading (3/30 – 4/3), the stock price fell 23% as investors were worried about the security risks from Zoom.
Figure 2: The Calm Before the Storm – How the Market Responded to Zoom’s Security Issues
Aberdeen Behavioral Technographic data shows that this security fiasco may have nascent effects that will bear out in the long run (Figure 3). We see an initial spike in users viewing comparisons / reviews for Zoom hitting a peak at 1,609 unique users. This is in line with the initial flood of users downloading / installing the software.
However, we see a second spike in comparisons / reviews for Zoom, which directly coincides with the announcement of security issues with Zoom. More importantly, we can see a lagged effect (roughly seven days) on users’ referencing comparisons / reviews for Webex, a competing software of Zoom.
Figure 3: Zoom Security Issues May Lead Users to Look for Alternatives
It would appear that a subset of Zoom users are weary of the security issues and are trying to ascertain whether Webex is a viable alternative. This trend may portend a defection of a large base Zoom users in the coming weeks. Of course, the volatility in the broader market impacts the stock price, but the correlation between the security risk, the decline in the stock price, and the mass of users investigating viable alternatives shouldn’t be ignored.
Co-Author:
Benjamin Cavicchi is a Senior Data Analyst with Aberdeen. Benjamin holds a master’s degree from the University of New Hampshire in Economics.
