ZoomInfo is set to join the Nasdaq exchange, risking new confusion among investors trading other Zoom-named stocks

• ZoomInfo is slated to begin public trading on Thursday, but recent history suggests it could see sharp volatility from confused traders.
• Zoom Video, the immensely popular videoconferencing company, has seen its shares skyrocket through the year as investors bet on stay-at-home stocks to outperform.
• Yet Zoom Technologies, a China-based firm with no exposure to the work-from-home trend, posted bigger gains, likely due to traders mixing up the two firms' tickers.
• The SEC was forced to step in and temporarily halt trading of Zoom Technologies stock, citing "concerns about investors confusing this issuer with a similarly-named NASDAQ-listed issuer."
• ZoomInfo, a business-information firm, plans to raise as much as $890 million when it begins trading on the Nasdaq exchange, according to a regulatory filing.
• Watch Zoom Video trade live here.

Zoom Video and Zoom Technologies, meet ZoomInfo.

The latter company is expected to begin trading on the Nasdaq exchange on Thursday with an initial public offering raising as much as $890 million, according to a regulatory filing. The business-intelligence company will trade with the ticker ZI and could spark a return of trader confusion that rocked two similarly named stocks in March.

Zoom Video, the now-ubiquitous videoconferencing company, shot to stock-market stardom through the coronavirus pandemic as offices closed and workers turned to its service for remote meetings. The stock, which trades with the ticker ZM, is up roughly 229% year-to-date. Zoom Video's surging popularity was the likely cause for Zoom Technologies' leap and subsequent plunge.

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Zoom Technologies, which traded over-the-counter with the ticker ZOOM, enjoyed even steeper gains in March despite having no exposure to the videoconferencing business. The China-based firm saw its stock price spike roughly quintuple from March 18 to March 20 before plummeting just as much over the following four days.

It's likely traders looking to mint profits from Zoom Video's soaring demand mistakenly bought Zoom Technologies before realizing their error and dumping the shares.

Zoom Technologies' volatility even alerted the Securities and Exchange Commission, which temporarily suspended ZOOM trading on March 26. The agency cited "concerns about investors confusing this issuer with a similarly-named NASDAQ-listed issuer."

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Zoom Technologies has since fallen below its pre-pandemic lows and changed its ticker to ZTNO.

Time will tell if ZoomInfo can similarly benefit from the frenzy for Zoom Video shares. The videoconferencing firm surged as much as 6% on Tuesday after announcing in its first-quarter report it expects 200% revenue growth and 300% earnings growth by January 2021.

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