SpaceX Has Just Banned Zoom For This Reason

According to a memo dated March 28th obtained by Reuters, Elon Musk’s SpaceX has banned Zoom over “significant privacy and security concerns.”

SpaceX told its employees via e-mail that all access to Zoom, a remote conferencing services company, had been disabled with immediate effect.

One of SpaceX’s biggest customers, NASA, has also banned its employees from using Zoom, said Stephanie Schierholz, a spokeswoman for the U.S. space agency.

While many stores have shut down during a lockown in many states, SpaceX based in California, has remained open as it
is considered an essential business.

As more Americans are forced to stay at home, Zoom as well as other digital communications have been more utilized.
“We understand that many of us were using this tool for conferences and meeting support,” SpaceX stated. “Please use email, text or phone as alternate means of communication.”

D.A. Davidson analyst Rishi Jaluria picked up coverage of Zoom this week with a Neutral rating and $150 target price.
“While we like Zoom’s multiple growth drivers, emerging use cases, impressive financials, and tailwinds from changes being accelerated by Covid-19, we find the current valuation too rich and would wait for a pullback before buying shares,” wrote Jaluria.

“Zoom is not only benefiting from businesses using videoconferencing to manage a distributed workforce, but also from new use cases, including education, as Zoom is used by universities to broadcast lectures, telehealth, and social activity, as social distancing creates a void that we are seeing Zoom being used to fill,” he wrote. “More importantly, we view some of these changes as irreversible and believe Zoom will be a long-term beneficiary.”

Disclaimer: We have no position in Zoom Video Communications Inc. (NASDAQ: ZM) and have not been compensated for this article.