The Opening Bell is powered by The Water Coolest. You can sign up for TWC's full, daily email newsletter here. In the meantime, check out one of the features from today's edition ...
IT'S A LAWZOOT
Zoom has been caught on camera…
The San Jose based company is facing a class-action lawsuit out of California for allegedly sharing customer information with third parties. So much for sharing is caring.
The video conferencing company was caught getting in bed with Zuck and filming it on Zoom. Facebook was provided personal data and the customers’ device model whenever they would log in to a conference (which as of late, has happened a lot). FB would also receive the customers’ device’s unique advertising identifier, which if you can’t guess by the name, allows a company to target the user with ads.
Once company officials were ‘made aware’ of the device information-sharing issue on March 25, they removed the Facebook software developer kit on Apple devices and reconfigured the login for the browser to stop the share sesh.
However, that claim flies in the face of the lawsuit, which states that Zoom was paid from third parties for providing customer information, unknowingly to the Z-users, as Zoom does not disclose what information it shares with FB in its Terms and Conditions.
What goes up must come down
Zoom, the cinderella story of the past three months, has seen its stock skyrocket 113% YTD as many companies have miraculously figured out that employees can WFH and hold meetings via Zoom.
So the pullback yesterday was quite the surprise, as Zoom’s stock fell over 3% due to the lawsuit announcement.
The bottom line...
Elsewhere in the courtroom, Zoom's privacy practices are also being looking into by the New York Attorney General. The AG is questioning if Zoom’s security measures have properly beefed up to handle the increase in traffic.
But at least Zoom can look back at the end of the day and be happy it's not Houseparty. Its video conferencing competitor is fighting fires of allegedly having been hacked. Some prankster are posting online that their Spotify, PayPal, and Snapchat accounts have all been hacked after installing HP.
Zoom is ruining a good thing [Bloomberg]
But wait, there's more. The above is just one feature that appears in today's edition of The Water Coolest's daily email newsletter. Sign up now to get the latest news and commentary delivered to your inbox every weekday at 6 AM EST.