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Eric Yuan, founder and chief executive officer of Zoom Video Communications Inc., center, rings the opening bell during the company’s initial public offering (IPO) at the Nasdaq MarketSite in New York, U.S., on Thursday, April 18, 2019.
In just its third day of trading, Zoom has already surpassed Lyft to become the most valuable of all the tech companies to go public this year.
Zoom jumped 5% on Tuesday to $69 to close trading with a market capitalization of $17.7 billion. The stock surged 72% in its debut on Thursday and then rose 6% on Monday. Lyft fell 1.1% on Tuesday to $60.25 and is now valued at $17.2 billion. Pinterest, which also hit the market on last week, is worth $13.7 billion.
The three companies have kicked off what’s expected to be a big year for high-profile tech IPOs, with Uber’s offering right around the corner and Slack’s expected direct listing not far behind as well as an expected share sale from Postmates.
Zoom’s fast start even surprised founder and CEO Eric Yuan. Pinterest and Lyft had raised money at much higher valuations in the private market and both are much bigger in terms of revenue. But Zoom is growing more rapidly than it’s consumer peers, more than doubling sales in 2018, and the company is profitable while the others continue to burn cash.
The videoconferencing company’s rally so far stands in stark contrast to Lyft’s rocky start to trading. Since its debut on March 29, Lyft has seen its stock price fall 16% from its $72 IPO price as investors anticipate Uber’s offering.
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Watch: Early Zoom investor on first day of trading, upcoming tech IPOs