Zoom CEO Eric Yuan Becomes $6.6B Richer In A Day, Thanks To 40% Stock Surge

Zoom Video Communications Inc. ZM CEO Eric Yuan added $6.6 billion to his net worth Tuesday, according to the Bloomberg Billionaires Index.

What Happened: The sharp increase in Yuan's wealth came as the company’s shares skyrocketed 41% after it reported a rise in quarterly revenue and sales forecast a day earlier.

On Monday, Zoom reported  a 355% year-over-year increase in second quarter revenue to $663.5 million and 700% rise in active users as it benefited from the work-from-home trend in vogue due to the ongoing COVID-19 pandemic.

The video conferencing company founder’s wealth has increased to $23 billion this year, as of Tuesday, according to the Bloomberg index. 

Another notable beneficiary of Zoom stock’s appreciation is Hong Kong billionaire Li Ka-shing, who holds a 8.5% stake in the company.

The 92-year old’s holdings are now worth $11 billion or one-third of his total wealth, Bloomberg reported

Why It Matters:The COVID-19 pandemic has added to the wealth of several billionaires. This week, Tesla Inc TSLA CEO Elon Musk beat Facebook Inc FB chief executive Mark Zuckerberg to become the third-richest person in the world.

Amazon.com, Inc AMZN CEO Jeff Bezos became the first person to be worth over $200 billion in August.

On a single day in July, Bezos added $13 billion to his wealth — all thanks to the demand for the e-commerce company's services during the pandemic.

He has added $90.2 billion to his net wealth so far this year at $205 billion, according to the Bloomberg Billionaires index.

Price Action: Zoom shares closed nearly 41% higher at $457.69 on Tuesday but fell 0.8% in the after-hours session.

Posted In: Bloomberg Billionaires IndexCoronavirusCovid-19Eric YuanPandemicvideo conferencingNewsEntrepreneurshipEventsMarketsTechMediaGeneral