Is Zoom Stock Halal?
Table of Contents
How much of Zoom’s revenue comes from haram?
Zoom earns its revenue from subscription fees for privileged access to its unified communications platform.
In addition, Zoom provides professional services, including customer support, consulting services, and online event hosting solutions.
Practical Islamic Finance concludes:
None of Zoom’s revenue comes from anything inherently haram.
Does Zoom rely on interest to operate?
| Year-to-Date for period ended 4/30/2021 | Fiscal year ended 1/31/2021 | Fiscal year ended 1/31/2020 | |
|---|---|---|---|
| Interest Income (net) | $2,619 | $18,186 | $13,666 |
| Total Revenue | $956,237 | $2,651,368 | $622,658 |
| Interest Expense (net) | – | – | – |
| Total Expenses | $729,925 | $1,991,520 | $609,962 |
| Interest Income (net) / Revenue | 0.27% | 0.69% | 2.19% |
| Interest Expense (net) / Total Expense | – | – | – |
Practical Islamic Finance concludes:
Riba is used but not relied upon in Zoom’s operations.
What is Zoom’s Environmental, Social, and Governance (ESG) impact?
Environment
Zoom estimates its work from home solutions helped its customers reduce CO2 emissions by more than 55 million metric tons in 2020 during the COVID-19 pandemic, which is roughly equal to taking 11 million cars off the road.
Social
In fall 2020, Zoom invested over $1.5M in remote learning grants to organizations supporting education in under-resourced communities.
In addition, Zoom has an impressively high Glassdoor rating of 4.6 out of 5.0 from over 700 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Governance
No notable governance highlights.
Practical Islamic Finance concludes:
Zoom has a net positive ESG impact.
Comfort Rating
From Zoom’s business, financial, and ESG reviews, Practical Islamic Finance rates Zoom stock as: