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Li’s 8.5% stake in Zoom (ZM) added $3.2 billion to the billionaire’s wealth yesterday following Zoom’s cataclysmic growth amid the pandemic.
The early investment in Zoom Video Communications Inc (NASDAQ: ZM) by Hong Kong’s richest man, Li Ka-shing has managed to keep the billionaire businessman afloat amid business downturns caused by the coronavirus pandemic.
Per a report from Bloomberg, the move to invest in Zoom (ZM) which came as early as 2013 was spotted by Li’s long term confidante Solina Chau. Chau is a co-founder of Li’s investment venture arm, Horizon Ventures Ltd, an outfit that has vested stakes in multinational startups including Facebook Inc (NASDAQ: FB), Spotify Technology SA (NYSE: SPOT), among others.
Bloomberg confirmed that the COVID-19 pandemic has negatively weighed in on Li Ka-shing’s companies, CK Hutchison Holdings Ltd. and CK Asset Holdings Ltd, both renowned for building Hong Kong’s most iconic skyscrapers.
Li Ka-shing Major Businesses Balance Out Profit and Losses with Stake in Zoom
As Bloomberg reported, the shares of the two major companies in Li’s Conglomerates have lost more than a quarter of their value in 2020, and the tycoon who for decades profited by expanding in times of crisis is now scaling back, seeking cost cuts. While CK Hutchison’s profit dropped by 29% in H1 2020, CK Asset Holdings Ltd recorded a 58% profit plunge. Both firms have gloomy expectations for the second half of the year.
Despite these shortfalls, Li’s 8.5% stake in Zoom (ZM) gave the billionaire about $3.2 billion surge yesterday following Zoom’s cataclysmic growth amid the pandemic. Besides Zoom posting a Q2 revenue of $663.5 million outperforming the benchmark of $500.5 million set by analysts, the app has seen about 355% growth year-on-year as the app keeps devising ways to securely connect people together.
As a result of this growth, the shares of Li Ka-shing is currently estimated to be worth $11 billion, approximately one-third of all of the 92-year old’s $32.6 billion.
While Li’s two firms noted a bearish expectation for the other half of the year, Zoom (ZM) in its Q2 performance report has given an ambitious projection for the 2020 fiscal year. This will likely keep Li Ka-shing atop Hong Kong’s billionaire’s index.
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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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