Zoom's share price has plummeted after Facebook announced plans to roll out new video call features for its Messenger app.
On Friday, Facebook announced the launch of Messenger Rooms, a new feature for its Messenger app which will allow up to 50 people on a video call at the same time with no time limit.
The free-to-use Messenger Rooms feature will launch in some selected countries this week before being rolled out globally. The BBC reported that Facebook has released the features earlier than planned as a result of the coronavirus.
In comparison, Zoom's free offering allows up to 100 participants in a single meeting, but group calls are limited to 40 minutes duration. Users must sign up to its "Pro" subscription in order to host video meetings longer than 40 minutes, which costs £11.99 per month according to its website.
Zoom was left reeling after Facebook's announcement, with the video calling vendor's share price plummeting by more than 10 per cent before markets closed on Friday evening.
The San Jose-based firm has been one of few to massively benefit from the COVID-19 crisis with its share price rising by more than 130 per cent since the start of the year.
The firm added more users in February than during the whole of 2019 and hit 300 million users last week, 100 million more than at the start of April.
But Zoom's platform has been the subject of numerous privacy and security incidents, with unwanted participants "Zoombombing" users' calls.
Global organisations including Google and SpaceX have banned their employees from using Zoom. Schools and government bodies have taken similar measures in recent weeks over cybersecurity concerns.
Zoom rolled out a security update last week to combat these concerns - which added improved encryption and gives users more control over their privacy settings.
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