Zoom (ZM) - Share Chat

Is there a possibility here that Zoom is going through it’s Tesla moment? By that I mean the relentless bad news and the stock price taking the hit, just like when Tesla went to $180.

Even though Google have blacklisted it, it’s still just got amazing brand recognition from this. And if they can fix their issues there’s no reason why this can’t be the go to platform for conference calls and video networking going forward.

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Completely agree, Google have banned it but they have a vested interest.

Governments, TV companies, education all continue to use it (despite a few examples of people banning it).

‘Let’s Zoom’ is becoming a household phrase just like ‘I’ll Google it’, very exciting times.

But as ever, please do your own research.

Tesla is in a sector of its own. Their software stack is hard to replicate and their hardware stack, including proprietary chip design, is a few years ahead of competition. But they still face plenty of competition.

Zoom’s offering is not unique - they’re a video chat platform. But the user interface/ease of use made it a current leader from 10mm to 200mm users. It’s still hard justify its incredibly high valuation where multiples are in 1000s.

They have recently hired facebook’s former CSO. https://seekingalpha.com/news/3559284-zoom-faces-new-suit-hires-former-facebook-cso

Germany:

The ministry adopted the restriction, also reported by the Handelsblatt newspaper, after concluding that Zoom’s software had “critical” weaknesses.

A memo to employees cited by the paper said that, “based on media reports and our own findings, we have concluded that Zoom’s software has critical weaknesses and serious security and data protection problems”.

But since the system was in widespread use among the ministry’s international partners, the memo said it was currently impossible to ban its use entirely.

Good article here…

https://seekingalpha.com/article/4337039-why-zooms-stock-price-is-reasonable

That post by a SA contributor uses a price/sales (P/S) metric to justifty the current price per share. On its own, a ratio is not much - we have to compare it to, say, similar companies. If we choose to use one ratio for valuation, we should also look at the others too.

In addition. P/S is more useful for early stage companies with no profits (hence the emphasis on sales and not earnings, such as net profit or EBITDA).

ZOOM is a profitable company. It’s very popular, an amazing growth story, is removing the skeletons from the closet, but the traders (and algorithms) have pushed the price to beyond the happy days of Virgin Galactic earlier this year. Time will tell whether it’s a sustainable $200 stock or not.

But it’s all relative.

http://pages.stern.nyu.edu/~adamodar/pdfiles/country/relvalAIMR.pdf
(Prof. Damodaran is said to be the first prof. to offer valuation classes at business schools - Equity analysis: A Viral Market Meltdown III: Pricing or Value? Trading or Investing? - Aswath Damodaran (Musings on Markets))

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Very interesting, thank you!

“And now, Mr. Iger has effectively returned to running the company. After a few weeks of letting Mr. Chapek take charge, Mr. Iger smoothly reasserted control, BlueJeans video call by BlueJeans video call. (Disney does not use Zoom for its meetings for security reasons.)”

Source - NYT [On :freetrade:] Disney - DIS 🐭

Shares of Zoom Video Communications Inc. continued their rebound Tuesday after Cantor Fitzgerald analyst Drew Kootman chimed in with a bullish view of the stock.
“We believe the current COVID-19 environment presents significant upside potential not currently assumed in the stock,” wrote Kootman, who initiated coverage of the shares with an overweight rating and $150 target.
Zoom’s stock US:ZM gained 4.4% in Tuesday’s session, making for a roughly 25% rally over the past four trading days following a rough stretch earlier in April as criticism over the company’s privacy and security policies pressured the shares.
“We note we do not expect a material impact from recent privacy/security issues as we believe the company is taking appropriate steps to improve the problem,” Kootman wrote. He’s upbeat that Zoom will be able to keep picking up share, grow its margins, and cross-sell its various products, in part due to what Kootman sees as “its superior tech, high-quality platform and its growing ecosystem.”

There’re two zero days out in the wild for Zoom apps @Ian - one for MacOS and one for Windows. The former is not as serious. Both may have a short shelf life.

How do you update WebRTC? You disable it, to be on the safe side.

Standard Chartered bank

Great news… You would have thought that the security services checked the security?

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ZOOM INVESTOR ALERT: Labaton Sucharow LLP Files Securities Class Action Lawsuit Against Zoom Video Communications, Inc. and Certain Executives and Encourages Investors to Contact the Firm (Ticker: ZM)

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300 Million daily users.

https://finance.yahoo.com/news/zoom-daily-users-surge-300-211616755.html

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There was me hoping for $200- by the end of the year…! Might come a little sooner! Think I’ll take some out if it hits my target.

Google hang outs is pretty much exactly analogous and is free. I am extremely curious why zoom took off so hard.

Most of the corporates I know are using teams by the way.

The video quality of Hangouts isn’t great.

That and you can only have 25 video callers per meeting is quite a big restriction! You would struggle if you have a medium/large size company.

So, Zoom rolled out a security update over the weekend that will provide stronger encryption for video calls to its paying customers.

While some organizations, such as schools, will also receive these security features, most non-paying users will not.

It’s a great strategy for improving monetisation, and a great move just before the earnings call, which is today, 2nd June 22:30.

“The US company’s revenue soared by 169 per cent to $328m in the three months to the end of April, as employers around the world signed on as customers to cope with an enforced move by most of their staff to working from home.”

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We are switching from BlueJeans to Zoom at work this week. Interestingly, although Zoom is more expensive on published prices, they did a deal to make sure that they are cheaper than what we already had. I think their sales team is being quite aggressive at the moment.

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