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Jun 2, 2020

Market Insider | Biggest Moves Premarket: Stocks making the biggest moves in the premarket: Dick's Sporting Goods, Lululemon, Apple & more

Peter Schacknow

Take a look at some of the biggest movers in the premarket:

Dick's Sporting Goods (DKS) – The sporting goods retailer lost 62 cents per share for the first quarter, wider than the 57 cents a share loss expected by Wall Street. Revenue and comparable-store sales also missed estimates, amid Covid-19-related store closures. Dick's did see a 110% surge in e-commerce sales during the quarter, and added that the current quarter has gotten off to a strong start.
Lululemon (LULU) – Wells Fargo Securities downgraded the athletic apparel retailer to "equal weight" from "overweight," saying the stock's risk/reward profile is now balanced after a 125% runup since mid-March.
Lands' End (LE) – In a preliminary report, the apparel retailer said it lost 64 cents per share for its first quarter, wider than the 56 cents a share loss that analysts had anticipated. Revenue was slightly below forecasts. Lands' End said its company-operated stores had seen comparable-store sales growth of 14.2% in February, before its stores closed in mid-March due to the coronavirus outbreak.
Starbucks (SBUX) – Starbucks is asking workers to choose between more limited hours, or taking unpaid leave until at least September. The coffee chain does not expect a rebound in sales until then at the earliest.
Southwest Airlines (LUV) – Southwest is offering workers buyout packages and temporary paid leaves, in what CEO Gary Kelly said is an effort to ensure the airline's survival. Southwest has never laid off or furloughed employees in its 49-year history.
Apple (AAPL) – Apple is cutting iPhone prices in China, as it seeks to extend the momentum it has enjoyed as the Chinese economy gradually reopens following virus-related lockdowns and closures. reports that although Apple's own official Chinese website does not reflect price reductions, double-digit discounts can be seen on various reseller sites like Tmall.
Slack (WORK) – Slack was rated "outperform" in new coverage at Cowen, which said the shift to remote work has given the workplace messaging platform a "major booster shot" that is underappreciated.
Stitch Fix (SFIX) – Stitch Fix will cut 1,400 jobs in California and move some operations to a handful of lower-cost locations. The online clothing stylist said the move was related to the cost of doing business and California and not to the Covid-19 pandemic. The company also said it would offer new roles to all those affected by the move.
LabCorp (LH), Quest Diagnostics (DGX) – The medical lab operators were both rated "buy" in resumed coverage at Deutsche Bank. The firm notes a faster-than-expected rebound in routine testing, as well as a Covid-19 testing addressable market that it feels is currently underappreciated.
Visa (V) – Visa said U.S. payment volumes fell by 5% in May, slower than the 18% decline registered in April and a possible indication that consumer spending is recovering as coronavirus-related lockdowns are eased.
MoneyGram (MGI) – MoneyGram is the target of a takeover bid by rival money transfer company Western Union (WU), according to a Bloomberg report. No potential purchase price was disclosed.
S.L. Green Realty (SLG) – The New York City-based commercial landlord said it had collected 89.1% of its April rent, amid challenges presented by the pandemic, with May collections on a similar trajectory. April figures show a 63.3% collection rate for retail tenants, 95.1% for renters of office space.

Analysis | The Cybersecurity 202: Anonymous hacking collective seeks to help protests against police brutality

By Joseph Marks

with Tonya Riley

Online accounts claiming to be associated with the hacking group Anonymous are trying to help protests against police brutality that are unfolding across the nation.
But their efforts may be more flash than substance.
The accounts claimed credit for stealing and spreading a batch of alleged email addresses and passwords from Minneapolis police officers, though it is highly unlikely that Anonymous members actually hacked police computer systems.
An unofficial Facebook page affiliated with the group posted an ominous video of someone in its signature Guy Fawkes mask pledging to expose the alleged dirty secrets. A rudimentary cyberattack temporarily forced the police department’s website offline, adding to speculation over the group's involvement.
The efforts are aimed at retaliation against the department over the killing of George Floyd, a black man whose death in the custody of the Minneapolis police has sparked demonstrations and clashes between protesters and authorities in cities across the nation.
The return to the spotlight is reminiscent of the shadowy hacktivist group’s heyday between 2008 and 2013, when its loose coalition of members attacked the Church of Scientology, partnered with WikiLeaks to spill information about a private intelligence firm and helped Arab Spring protesters in Tunisia stay online amid government efforts to silence them.

A man wearing a stylized Guy Fawkes mask attends a recent protest over the death of George Floyd. (Ricardo Arduengo/AFP/Getty Images)
But it is far from clear whether this marks a real resurgence for the group. 
So far, recent activities associated with the group have been fairly unsophisticated. The emails and usernames that they claimed came from the police department were probably compiled from information in several previous data breaches that the hacktivists could have easily found online, said Troy Hunt, a Microsoft executive who runs a site that tracks data breaches.
Hunt described the leaked data on Twitter as “almost certainly fake.” Among other clues, many of the passwords were so simple and guessable that it’s highly unlikely any accounts run by a police department or other city agency would have accepted them, he said.
Hunt speculated that the phony claims were gaining traction online because people outraged at Floyd’s death simply wanted them to be true.
Thirdly, this is getting traction because emotions are high; public outrage is driving a desire for this to be true, even if it's not. Hash-tagging it "Anonymous" implies social justice, even if the whole thing is a hoax.
— Troy Hunt (@troyhunt) May 31, 2020
The cyberattack that brought down the police department’s website over the weekend was also an easy and low-skill operation, as I reported Monday.

Demonstrators near the White House in Washington. (AP Photo/Evan Vucci)
Anonymous hacks once grabbed headlines, but the group has splintered and members have fled in recent years. 
That’s largely due to the group breaking up into different divisions over political disagreements, and frustration that its hacks were often ineffective at effecting change, IBM’s X-Force threat intelligence division found in a 2019 report summarized by ZDNet.
Hacktivism has been declining overall since 2015, the report found.
Significant data breaches from Anonymous and related groups has dropped about 95 percent since 2015. There were only five such breaches in 2017 and two in 2018, IBM found.
But what the group lacks in hacking power, it's making up for in social media influence. 
The Facebook post that pledged to expose the Minneapolis Police Department’s “many crimes to the world” has been viewed more than 3 million times. That’s far more than the page’s other recent videos. A tweet promising to “intervene if and when it becomes necessary” if the Trump administration imposes harsh penalties on people arrested at protests was liked more than 200,000 times.
Gabriella Coleman, a McGill University professor who has written extensively about Anonymous, told Vice’s Lorenzo Franceschi-Bicchierai that the viral spread is “unlike anything I’ve seen.”
In a bizarre twist, a lot of the recent sharing of Anonymous posts came from fans of Korean pop music, Coleman noted.
--> Some interesting perspectives that provide a cultural (and not disinfo) twist on what may be going on
— Gabriella “Biella” Coleman (@BiellaColeman) June 1, 2020
Because Anonymous is such a loose collective, it is unclear how many people claiming membership have any true affiliation.
The group also has a history of exaggerating its activities and claiming that members stole data that was freely available.
In February 2019, for example, an offshoot of the group called “Operation Death Eaters” said it had stolen secret files belonging to Jeffrey Epstein, the billionaire who was arrested on federal charges of alleged sex trafficking of underage women.
In fact, the allegations the group published largely came from public court documents, as CyberScoop’s Jeff Stone reports.

The keys
Misinformation about widespread communications outages in D.C. caused mass confusion on Twitter. 

Protesters are arrested on I Street NW near the intersection of 16th Street. (Evelyn Hockstein for The Washington Post)

The hashtag #DCblackout appeared to originate from an account that had just three followers, but within hours it had generated half a million tweets, Craig Timberg, Elizabeth Dwoskin and Fenit Nirappil report. D.C. officials confirmed there was no communications blackout that they were aware of.
Twitter removed hundreds of “spammy accounts” using the hashtag during its investigation, Twitter spokesman Brandon Borrman said. “We’re taking action proactively on any coordinated attempts to disrupt the public conversation around this issue,” he said.
The hashtag appears to have gotten early support from fake users, including several that normally tweet about Korean pop music, Darren Linvill, an assistant professor of communication at Clemson University who studies social media misinformation, told my colleagues. When other Twitter users tried to dispute the phony accounts, it only accelerated its popularity.
The rapid-fire spread of the misinformation highlights Twitter's ongoing difficulties with checking misinformation in real time and keeping it off its trending-topics tab. That could be particularly dangerous given the role social media has played in accelerating protests and police reaction, experts say.
Related reading:
Both countries have flooded Twitter with hashtags and other content experts say is aimed at sowing dissent across the country.
Pennsylvania officials are preparing for an Election Day racked by protests and confusion.

Kay Thiebaud, left, and Lynn Meyers set up a scanner used to tabulate votes on Monday near Zelienople, Pa., in preparation for Tuesdays Pennsylvania primary. (Keith Srakocic/AP)

Protests over the death of George Floyd are threatening to close polling places there even as many residents who wanted to vote by mail to avoid polling places haven’t received their ballots, Amy Gardner reports.
This was already a difficult task with the pandemic, and the current events have only made that difficult task harder,” said Nick Custodio, a deputy city commissioner.
Today's primary election will also be a major test for new voting machines in some Pennsylvania counties, Reuters's Julia Harte reports.
Efforts to surge voting by mail during the pandemic will be tested in numerous states holding primaries today. States that vote today and have tried to make it easier for residents to vote by mail include Maryland, Rhode Island, Montana, South Dakota and the District of Columbia.

Meanwhile, President Trump is ramping up his war against vote-by-mail, which he has claimed without evidence will lead to widespread fraud. 
His campaign is partnering with the Republican National Committee to organize a host of legal challenges against the practice, particularly in key swing states, Amy Gardner, Shawn Boburg and Josh Dawsey report. “The move reflects the recognition by both parties that voting rules could decide the outcome of the 2020 White House race amid the electoral challenges posed by the coronavirus pandemic,” my colleagues report.
A bipartisan group of lawmakers is rolling out a bill to improve privacy protections for coronavirus contact-tracing apps.

Sen. Maria Cantwell (D-Wash.). (Erin Scott/Bloomberg News)

The proposal, spearheaded by Sen. Maria Cantwell (D-Wash.), is designed to ensure that Americans can participate in contact tracing without sacrificing their personal data, Tony Romm reports.
The bipartisan bill would require companies developing contact-tracing applications to work with public health authorities. It also requires the companies to obtain consent before they begin location tracking.
The bill takes a much harder line on regulating contact-tracing technologies by employers and private businesses, which are largely exempt under an alternative bill introduced by Republicans last month. It would also grant the federal government more power to punish companies that build the apps for privacy abuses and data breaches.

Government scan

Experts warn the government prepare now for how future pandemics might stress the nation’s cybersecurity protections.

Photo by KEVIN DIETSCH/POOL/EPA-EFE/Shutterstock (10638989m) Sen. Angus King, I-Maine.

Top priorities for the Cyberspace Solarium Commission include requiring stricter cybersecurity protections for internet-connected devices and creating a stronger system to thwart disinformation on social media. The group of lawmakers, former government officials and private sector leaders is co-chaired by Sen. Angus King (I-Maine) and Rep. Mike Gallagher (R-Wis.).
The recommendations come in a coronavirus-themed addendum the group is releasing today to a far more detailed report it launched in March. That effort slipped out of public view as the coronavirus pandemic worsened. Now the group is hoping the difficulties the government has faced in responding to the pandemic will improve their appetite for protecting against a major cyberattack before it comes.

Global cyberspace

Two Chinese companies are urging the Federal Communications Commission not to revoke their licenses to operate in the United States. 

Federal Communications Commission (FCC) Chairman Ajit Pai. (Jacquelyn Martin/AP)

Pacific Networks Corp. and ComNet filed a 92-page briefing with the agency disputing claims that they're beholden to the Chinese Communist Party and represent security risks for the United States, Reuters reports.
China hawks have called on the agency to revisit the approvals it granted the company more than a decade ago.
More international news:

The first step for any decision on Chinese telecoms company Huawei is for Britain's National Cyber Security Centre (NCSC) to finish its work on the impact of U.S. sanctions, a spokesman for British Prime Minister Boris Johnson said on Monday.

Cyber insecurity

Attempts by hackers to steal personal information via mobile phones are on the rise as people use their devices more during the pandemic.

A man uses his cellphone during the coronavirus pandemic. (Cindy Ord/Getty Images)
There was a 37 percent increase worldwide in phishing attacks against mobile phones managed by companies and other organizations between the fourth quarter of 2019 and the first quarter of 2020, according to the mobile security firm Lookout.
Government agencies saw some of the greatest increases, with such attacks roughly doubling during the year. 

Chat room

Some cybersecurity pros expressed solidarity with Facebook employees who staged a virtual walkout over the company's decision not to fact check some of President Trump's posts as Twitter has done.
React Cores Dan Abramov:
The React Core team is joining the Facebook employee walkout in solidarity with the Black community.
Facebookʼs recent decision to not act on posts that incite violence ignores other options to keep our community safe. We implore the Facebook leadership to #TakeAction.
— Dan Abramov (@dan_abramov) June 1, 2020


  • Sen. Tom Cotton (R-Ark.) will testify in front of the British Parliament’s defense subcommittee on the security of 5G today.
  • The House Judiciary Committee will host a hearing on protecting the right to vote during the coronavirus pandemic at 10 a.m. Wednesday.
  • The RSA Conference will host a webcast on nation-state cyberthreats and the 2020 election on Thursday at 4 p.m.

Secure log off

John Oliver breaks down Trump vs. voting by mail on “Last Week Tonight.”

News | World | Politics | China: Hong Kong leader calls out 'double standards' on national security, points to U.S.

3-4 minutes - Source: CNBC

Carrie Lam, Hong Kong's chief executive, left, speaks while wearing a protective mask as Sophia Chan, Hong Kong's secretary for food and health, listens during a news conference in Hong Kong on Tuesday, June 2, 2020.
Carrie Lam, Hong Kong’s chief executive, left, speaks while wearing a protective mask as Sophia Chan, Hong Kong’s secretary for food and health, listens during a news conference in Hong Kong on Tuesday, June 2, 2020.
Roy Liu | Bloomberg via Getty Images

Hong Kong leader Carrie Lam accused foreign governments of “double standards” in their reaction to Beijing’s plans to impose national security laws on the city, pointing to anti-police brutality protests in the United States.
In her first public appearance after Washington said it will remove Hong Kong’s preferential treatment in U.S. law in response to Beijing’s proposal, Lam warned countries threatening actions against the city they may hurt their own interests.
“They are very concerned about their own national security, but on our national security...they look through tinted glasses,” Lam told a weekly news conference.
“In the U.S., we see how the riots were being handled by the local governments, compared to the stance they adopted when almost the same riots happened in Hong Kong last year.”
Having lost patience with Hong Kong after large-scale and often-violent pro-democracy protests last year plunged the Chinese-ruled city into its biggest crisis in decades, Beijing authorities last month advanced plans to introduce laws tackling secession, subversion, terrorism and foreign interference.
The laws could also see Chinese intelligence agencies set up shop in the global financial hub.
U.S. President Donald Trump, saying Hong Kong was no longer sufficiently autonomous from Beijing as promised at the time of the 1997 handover of the territory by Britain, said Hong Kong will no longer be treated differently from mainland China in U.S. law.
Hong Kong and Beijing authorities have repeatedly insisted rights and freedoms will be preserved, remarks echoed by Lam on Tuesday. She said “public concerns” about the legislation were understandable as a draft was yet to be finalized.
In Washington, police fired tear gas and rubber bullets to disperse peaceful demonstrators near the White House on Monday as Trump vowed a massive show of force to end violent protests over the death of a black man in police custody.
Dozens of cities across the United States remain under curfews not seen since riots after the 1968 assassination of Martin Luther King Jr. Police in some places were also seen joining marches and kneeling in solidarity with the protesters.
Protesters in Hong Kong have mainly been asking for universal suffrage and an independent inquiry into how police handled the demonstrations.
Hong Kong, where protesters reject Lam’s description of the anti-government demonstrations as riots, has not enforced curfews. Police have been accused of disproportionate use of force, which officials have denied.

News | World Economy | China: Is China using a weak soybean demand and adequate supply as an opportunity to halt U.S. imports?

Huileng Tan

Farmer John Duffy loads soybeans from his grain bin onto a truck before taking them to a grain elevator on June 13, 2018 in Dwight, Illinois, United States.
Farmer John Duffy loads soybeans from his grain bin onto a truck before taking them to a grain elevator on June 13, 2018 in Dwight, Illinois, United States.
Scott Olson | Getty Images

News that Beijing has ordered state firms to halt purchases of farm products could well be an opportunistic political maneuver stemming from fundamental weakness on the demand side in China, said analysts.
On Monday, Reuters reported that China has asked main state firms to suspend large-scale purchases of major U.S. farm products like soybeans and pork. That came in response to President Donald Trump, who said last week he would strip Hong Kong of its special status with the U.S.
But soybean demand has not been strong in China anyway.
“Partly, it’s because of the the virus outbreak (that) actually impaired the logistic arrangements between China and the U.S., and also after the virus outbreak, what we see is that the domestic demand in China is actually collapsing,” said Hao Hong, head of research and chief strategist at the Bank of Communications.
Even though the economy is gradually recovering in China, people are just not spending and dining out as much as before, which helps account for the lower need for soybeans — typically used in animal feed.
“With logistic concerns and also with collapsing domestic demand, it’s not difficult to see how China would require less of the soybean input,” Hong told CNBC on Tuesday.
In April, China’s imports of U.S. goods slumped 11.1% in dollar terms from a year ago.
According to Reuters, Chinese importers have also canceled shipments of American pork and suspended state purchases of bulk volumes of U.S. corn and cotton as well. China is the world’s largest pork consumer and importer.
Just last week, China reported an African swine fever outbreak in a northwestern province. The swine fever outbreak has decimated China’s hog herds and hit demand for soybean feed even before the coronavirus outbreak.
Arlan Suderman, chief commodities economist for INTL FCStone said in a tweet on Monday that the suspensions could be temporary.
“Supplies are adequate near-term due to current shipments, giving China freedom to threaten,” said Suderman.
Bocom’s Hong said he wouldn’t be surprised to see Chinese demand for U.S. soybeans returning should the economy post a V-shaped recovery in the second half of the year.
After all, the U.S. is a major exporter and a large source of China’s soybean imports and China is the world’s largest importer of soybeans.
Under the phase one trade deal the U.S. and China signed in January, China had pledged to buy an additional $32 billion worth of U.S. agriculture products relative to the 2017 level over the next two years.
Rural constituents make up an important part of Trump’s voter base.
Already, Chinese state-owned firms bought at least three cargoes of U.S. soybeans on Monday, Reuters reported.
According to the U.S. Department of Agriculture in its World Agricultural Supply and Demand Estimates report released in May, soybean exports in the 2019 to 2020 marketing year is forecast to be 1.675 billion bushels — a 4.2% drop from the previous year.

News | Europe | Greece: Will Greece negotiate a new fiscal targets with Europe for 2021?

Silvia Amaro

Greek Finance minister Christos Staikouras presents the Bank of Greece numismatic programme for 2020.
Greek Finance minister Christos Staikouras presents the Bank of Greece numismatic programme for 2020.

Greece wants to negotiate new fiscal targets with its euro zone creditors as the coronavirus crisis pushes its debt pile to almost 200% of gross domestic product (GDP).
Greece, which has been through three bailout programs over the last decade, agreed in 2018 to reach a primary budget surplus — when a government’s revenues are higher than its spending — of 3.5% until 2022. Though this required level of surplus limits the government’s ability to spend, it came in exchange for softer debt repayment conditions.
However, as the coronavirus pandemic brought the Greek economy to a halt, the country’s finance minister told CNBC he will be discussing new targets with his euro zone counterparts.
“Taking into account what the Eurogroup (of euro zone finance ministers) decided recently, we don’t have these targets in 2020 and we will discuss as Europe, at the Eurogroup, the targets, the rules and the requirements for 2021 onwards taking into account the response to the coronavirus crisis,” Christos Staikouras, Greece’s finance minister, said Tuesday.
In the wake of the pandemic, European policymakers agreed in March to lift fiscal targets for each member country, giving them more leeway to tackle the unprecedented economic shock. However, this is meant to be a temporary measure in response to the economic crisis across the European Union.
The European Commission, the executive arm of the EU, forecast in May a debt-to-GDP ratio of 196.4% for Greece in 2020 and of 182.6% in 2021. In 2019, Greece’s debt pile stood at 176.6% of GDP.

News | Business | US Economy: Coronavirus could ‘drag on US economy for a decade'

2-3 minutes Source: BBC

Woman outside closed California State Employment Development Department office due to coronavirus. Image copyright Getty Images
The drag on the US economy from the virus pandemic will last almost a decade, according to projections by the Congressional Budget Office (CBO).
It forecasts the outbreak will cut US economic output by 3% between this year and 2030, a loss of $7.9tn (£6.3tn).
The warning comes as tens of millions of people are out of work due to lockdown measures.
America's historic downturn comes even after trillions of dollars have been pumped into the economy.
The nonpartisan CBO said the majority of the loss was caused by the sharp contraction in economic activity this year, which it had not predicted in its last 10-year report, published in January.
“Business closures and social distancing measures are expected to curtail consumer spending, while the recent drop in energy prices is projected to severely reduce US investment in the energy sector,” CBO director Phillip Swagel wrote in response to an inquiry from Senate Minority Leader Charles Schumer.
“Recent legislation will, in CBO’s assessment, partially mitigate the deterioration in economic conditions," he added.
Since the virus pandemic hit the US the government and the central bank have provided trillions of dollars of support for the world's biggest economy.
Still, unemployment has soared to levels not seen since the Great Depression of the 1930s as more than 40 million Americans have already been put out of work.
America's unemployment rate hit 14.7% in April and on Friday the US Labor Department is expected to confirm that it reached 20% in May. In March that figure stood at just 4.4% having risen from a 50-year low from the month before.
There is an ongoing debate in the US Congress over a new $3tn a new stimulus plan as well as a proposal to renew several federal aid programmes that would otherwise lapse, including a temporary increase to jobless benefits that is set to expire in July.
The CBO is a federal agency within the US government that provides budget and economic information to Congress.

News | Business: Can Zoom turn popularity into profit?

By Natalie Sherman 

A computer screen with four faces on it Image copyright Zoom
Image caption Zoom has become the app many are using to stay in touch with friends, family and work colleagues
When it comes to its growth rate, video conference company Zoom has lived up to its name.
Use of the firm's software jumped 20-fold in the first three months of the year, as the coronavirus pandemic forced millions to work, learn and socialise remotely.
But it's not clear the newfound ubiquity will help it be a money-maker.
Zoom has warned of increased costs, while the spotlight has also brought scrutiny of its security practices and ties to China.
The company's share price has roughly tripled in value since January nevertheless, surging past $200 on Monday - a day before investors are to receive a quarterly update.
"They were on a very strong trajectory before... and happened to be in the right place at the right time as the whole world decided we needed to communicate well on video," says Ryan Koontz, managing director at Rosenblatt Securities.
"They have this amazing brand... now they have to leverage that brand and figure out which markets they're going to go after."

How did Zoom start?

Founder Eric Yuan didn't really intend to make Zoom a household name.
A Chinese-born software engineer, Mr Yuan started the company in 2011, after years rising through the ranks at WebEx, one of the first US video conference companies, which was purchased by Cisco in 2007 for $3.2bn.
At the time, he faced doubts from many investors, who did not see the need for another option in a market already dominated by big players such as Microsoft and Cisco.
But Mr Yuan - who has credited his interest in video conferencing to the long distances he had to travel to meet up with his now-wife in their youth - was frustrated at Cisco and believed there was demand for software that would work on mobile phones and be easier to use.
When the firm sold its first shares to the public last year, it was valued at $15.9bn. That shot to nearly $58bn on Monday.
"What Zoom has done is kind of democratised video conferencing for all kinds of businesses and made it very simple for everyone from yoga instructors through to board room executives to deploy video," says Alex Smith, senior director at Canalys.
The firm's bread and butter customers are corporate clients, who pay for subscriptions and enhanced features.
In the 12 months to 31 January, Zoom reported $622.7m in sales, up 88% from the prior year. It added more than 800 employees - roughly a third of its current staff. And unlike many newly listed start-ups, it turned a profit, earning $25.3m.

Reputational hit

When the lockdowns started, Zoom lifted the limits for the free version of its software in China and for educators in many countries, including the UK, helping to drive its popularity.
But the massive uptake also strained the firm, forcing it to invest to expand capacity to meet the needs of new users, many of whom are not paying customers.
Its reputation also took a hit, as the new attention prompted hackers to hijack meetings and exposed a host of security flaws, revealing that the firm had sent user data to Facebook, had wrongly claimed the app had end-to-end encryption, and was allowing meeting hosts to track attendees.
It has also faced political scrutiny for its ties to China - where it has more than 700 staff, including most of its product development team - which have prompted warnings that it is not fit for government use.
In April, Mr Yuan, who is a US citizen, apologised for the security lapses and the firm started rolling out a number of changes intended to fix the problems. Zoom has also announced a number of new appointments familiar with Washington politics, including H R McMaster, a retired Army general and former national security adviser to Donald Trump.
Analysts said they expected the company would overcome these reputational blows.
"It's had that mishap and the fact that its name is still very much used as verbatim with video technology still gives it a lot of momentum and opportunity to continue," Mr Smith said.

Higher stakes

In an interview with the Wall Street Journal, Mr Yuan called it a "painful" journey, disclosing that some companies such as Tesla had dropped it after the revelations.
He said he hoped to return the firm's focus to business customers, but has also acknowledged elsewhere that the pandemic may have changed the company's path.
Analysts say they expect Zoom to maintain its focus on business customers, since that's how it makes money.
But the pandemic is likely to create more challenges for Zoom in that market too, as increased demand for remote work prompts competitors such as Microsoft and Cisco to pour resources into the field.
In the long run, analysts say they're not sure how many companies will want to pay for a service like Zoom's, which only offers video conferences.
"The stakes are higher and the competition's getting tougher, so we'll see," says Mr Koontz.

US Market | Futures Indicator: Stock futures little changed as investors assess economy reopening amid civil unrest

Yun Li

U.S. stock futures were little changed in early morning trading on Tuesday as investors grappled with civil unrest around the country as states try to reopen the economy from the coronavirus pandemic.
Futures on the Dow Jones Industrial Average traded 41 points lower, implying a Tuesday opening decline of around 25 points. S&P 500 and Nasdaq 100 also pointed to a largely flat Tuesday start for the two indexes.
In a last-minute address from the White House Monday evening, President Donald Trump said he will deploy the military if states and cities failed to quell the demonstrations. Futures fell as Trump spoke.
“I am mobilizing all federal and local resources, civilian and military, to protect the rights of law abiding Americans,” Trump said. “If a city or state refuses to take the actions necessary to defend the life and property of their residents, then I will deploy the United States military and quickly solve the problem for them.”
The stock market has largely ignored the unrest until now, but that could change if investors believe the protests would continue through the summer, disrupting states plans to reopen and hurting consumer confidence.
“Good news on vaccines helped stocks in May, but US-China relations & civil unrest could steal the spotlight in June,” Lori Calvasina, RBC’s chief U.S. equity strategist, said in a note. “The S&P 500 remains highly news flow driven.”
New York Gov. Andrew Cuomo announced New York City will be under curfew Monday night starting at 11 p.m. and lasting until 5 a.m. Tuesday to curb protests. Similar curfews were instituted in cities across the country in an effort to dissolve mass gatherings.
The market rose slightly on the first day of June following back-to-back monthly gains. The Dow rose about 90 points on Monday after a 4.2% gain in May and a 11% rally in April. Meanwhile, the S&P 500 climbed about 0.3% after gaining 4.5% in May and 12.6% the month before.
Investors continued to focus on the progress of economic reopenings, bidding up shares of airlines, retailers and cruise line operators. However, many on Wall Street grew worried that rising risks of the racial strife and U.S.-China tensions could reverse the market’s massive comeback.
Tensions with China continued to simmer as the country asked state-owned firms to halt purchases of soybeans and pork from the U.S., Reuters reported Monday. The move came after Trump said he would take steps to revoke Hong Kong’s favored trade status, in response to a controversial new security law passed by China’s parliament.
“The disconnect between stocks and the economy generated widespread concern among some investors,” Jeff Buchbinder, equity strategist for LPL Financial, said in a note. “At the same time, reopening optimism and massive stimulus overshadowed some concerns about a second wave of COVID-19 infections and increasing US-China tensions.”
As of Monday, the S&P 500 has bounced about 39% off its March low, sitting about 10% below its record high set in February.