Even prior to Covid-19, most American households and many American corporations were already using software and services from Zoom Video Communications. If you have a subscription, or if you you've attended someone else's Zoom online webinar or meeting, you can attest to the software being quite good.
Now with many Americans working from home, thousands of Zoom interactions take place each day. For example, my daughter is an Engineering student at Penn State in State College, PA, a school with > 40k Undergraduates. With campus closed, students' classes are being taught over the Internet, via this Zoom portal: Zoom_Login
People in the investment community have recently pointed out that Zoom's Form 10-K filing with the SEC discloses some specifics of Zoom's engineering operations in China. This is Zoom's 10-K filing, for their fiscal year ended Jan 31, 2020, on the SEC's website:
Inline XBRL Viewer
Zoom voluntarily made this statement in their Form 10-K:
"In addition, we have a high concentration of research and development personnel in China, which could expose us to market scrutiny regarding the integrity of our solution or data security features."
Zoom "employ[s] more than 700 employees in China as of January 31, 2020."
With such excellent market momentum Zoom has done extremely well in recent times. The CEO is often on CNBC explaining how trends are lined up in Zoom's favor.
It seems odd that Zoom has so far escaped the scrutiny given to Huawei. Software usually has vulnerabilities, and that Zoom's software is at least partially designed in the PRC should raise concern. We're talking about a major communication platform that's highly relevant and widely used at this exact moment in US history, a moment when the US is more vulnerable than it's been in recent memory.
I'd appreciate it if other IPVM subscribers would at least skim through the 10-K and give us your reactions.