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.
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.
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.
“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.)”
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.
“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.”
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.