Zoom Video Communications (ZM -0.63%) is joining the Nasdaq 100 at the end of April, getting a spot in the Invesco QQQ Trust as a result, which is among the most highly traded exchange-traded funds or ETFs.
In a press release, Nasdaq said Zoom will replace Willis Towers Watson (WTW -0.23%) in the Nasdaq 100 Index. Zoom's inclusion will happen as of April 30.
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The addition of Zoom in the Nasdaq 100 comes as the video conferencing app has gained in popularity amid the COVID-19 pandemic. With millions of people sheltering in place, Zoom has become an important way to stay connected whether for work or play. At the end of December, it had peak daily users of 10 million. That has skyrocketed to 300 million as of April. In March Zoom reported 200 daily meeting participants.
Zoom hasn’t been without controversy, however. Privacy and security concerns quickly arose as reports of Zoombombing started to grow. Some school districts, companies, and governments have banned the use of the video conferencing app. That prompted Zoom to pledge to spend 90 days focusing on enhancing security and privacy rather than rolling out new features.
In what the tech stock called a milestone, this week it rolled out Zoom 5.0 via a software update that enhances encryption and gives hosts more control over meeting participants. Zoom is now letting customers choose which region data is routed through after it accidentally sent traffic through servers located in China.
Investors are reacting positively to Zoom’s Nasdaq 100 inclusion, sending shares higher in trading Friday.
