“I am proud to reach this step in our 90-day plan, but this is just the beginning. We built our business by delivering happiness to our customers. We will earn our customers’ trust and deliver them happiness with our unwavering focus on providing the most secure platform,” said Eric S. Yuan, CEO of Zoom.
Meanwhile Oded Gal, CPO of Zoom, added “Everything is being put through rigorous scrutiny. On the back end, AES 256-bit GCM encryption will raise the bar for securing our users’ data in transit. On the front end, I’m most excited about the Security icon in the meeting menu bar. This takes our security features, existing and new, and puts them front and center for our meeting hosts.”
Other new features include dashboard enhancement, secure account contact sharing, increased password complexity and a default waiting room setting that allows a host to keep participants in individual virtual waiting rooms until they are admitted to the meeting.
Hosts will also be able to “Report a User” to Zoom via the Security icon, and can disable the ability for participants to rename themselves.
These measures are intended to help ZM address the privacy concerns following its exponential user growth during the coronavirus pandemic.
“While there were flaws and mistakes uncovered given the significant usage spike and associated public awareness, we believe they have been addressed – quickly… We believe management saw the opportunity to take these actions and do the right thing, and did it irrespective of short-term considerations” cheered RBC Capital analyst Alex Zukin. He has a buy rating on the stock and $125 price target.
Overall, however, the stock has a Moderate Buy analyst consensus, with some analysts arguing that ZM looks overvalued at current levels. Indeed, the $118 average analyst price target indicates downside potential of over 20%. (See ZM stock analysis on TipRanks). Shares have surged over 120% year-to-date.
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