Zoom Video Communications Inc
$3.05 (1.91%) Today
52 Week High
52 Week Low
7 Days Mentions
If this new covid variant gets strong everything virtual will start booming again $ZM, $PTON and I think the biggest winner is going to be Talkspace $TALK 🗣- federal funding for mental health = virtual therapy booming we’re early and we could see it at $10-20 easily on no buyout possibly $50
Zoom would be one I would look at. fPE at 35. Their growth has indeed slowed but they are still growing by at least 20% yoy at the current quarterly pace and holly hell look at that cash... They are over 10% cash and no debt and trading at near pre-covid levels but their business has improved significantly since then and its highly unlikely to shrink. This is enterprise after all and they are the market leader. I think thats what you were looking for. Something that has significantly improved but got hammered by the tech implosion. There are some bear arguments for ZM such as Teams taking their market and the end of work from home. IMHO this isnt going to happen. For one thing, Zoom is the brand name for video chat. Teams is unknown outside of enterprise. The cost difference between them is so trivial to a business that it doesnt matter which you choose so you will choose whoever is more reliable or better fits your tech environment. Teams has a very bad history. They were terrible early on. Further Microsoft history with chat is just about the most embarrassing thing I have ever seen. They have tried so many times to take that market and failed every time. They even sunk established companies like Skype somehow... I love MSFT but their history with communication apps is truly remarkable and comedic. You would need to be insane to pick them over Zoom if you are a big company... or just masochistic. Next, I think work from home is still in its infancy. I think its no where near reaching its full potential. I think its going to explode the next decade. Any job that can be done remotely, will be or the companies offering the jobs will not find workers. Simple as that. Thus they will be forced to switch to work from home or go the way of the dinosaur. The greatest beneficiary of this will be Zoom. Thats my 2 cents anyway.
Yeah, I think ZM and DOCU are very different stories than NFLX. Those businesses spiked because of COVID. NFLX is not the same story. Their financials are consistently excellent, and the concern of other streamers taking their content gets weaker with every Netflix Original that gets made.
A correction already has happened on high PE / high PS stocks. Stocks like ZM, PTON, TDOC, NET are all down 60-70% or more. These are the most speculative names because they were being priced as if perpetual 50%+ revenue growth will extend for a decade plus. Further, names like PTON and ZM have growing competition and their long-term dominance in their fields is uncertain. The tech stocks that have fared better are names like NVDA, GOOG, AAPL, AMD, NFLX, etc. These names are absolutely dominant in their fields. They have massive moats and will outgrow the S&P500 in almost any environment. If the speculative tech stocks like ZM keep falling, you'll barely notice it on indexes. They're much smaller than they were even a few months back. Their valuation has less of a floor because they still trade on long-term growth potential vs. current financials. So market sentiment plays a big role in their valuation. Either way, if these names like ZM and PTON keep on dropping, you should seriously consider bargain hunting. Another big leg down will put the risk/reward of a long position heavily in favor of the long. They're already trading below their values in 2018/19 in a lot of circumstances, despite huge tailwinds from WFH transformation which is here to stay. IMO, the market is full of these mini-bubbles which get destroyed constantly. The market as a whole marches on. Just look at SPAC's in 2020 and crypto in 2018. Small/mid cap tech in 2021/22. There has been huge pain across these assets that did not spill over into the market at large. That is the trend. The trend is your friend.
My peloton sat in the corner for a year before I sold it. Our company uses google meet because it is part of the suite they provide. I have no problems with it. ZM is used by my kids schools and it has a ton of features, but there are a ton of competition. I see ZM going the way of webex. Be coming over bloated and only used by non technical or “old” companies that are stuck in their ways. Eventually Zoom will either need to be bought into another company or go the way of the dodo bird.
ROKU & ZM are solid companies. PTON is OK too, buy they have to navigate through manufacturing challenges. When they get a strength product through M&A on Tonal or make their own, it's game over. Disclosure: I own ROKU with a $420 price target (20x my revenue forecast).
History has shown moats can be created. That's why there's hundreds and thousands of non-FANG companies worth $100mm - $100bn on the stock market. Ease of use and software matters. That's why the iPhone is so popular. ZM / PTON / ROKU have optimized software in a simple way that matters and will endure. That's why there's more than 1 company in the world. That's why a venture ecosystem exists. Boomers like you probably just invest in GE and sit there for decades.
At what level are they buys to you? ROKU at 40x EBITDA w/ 50% revenue growth isn't a buy? It will be 20-25x EBITDA by end of next year. It's growing for the next decade. How far does ZM have to drop? It's down 60-70%, it has to go to 90%? Everything has value once it drops low enough. That's what our lord and savior DFV taught us.
You don't think being the #1 market share streaming stick / streaming software is a moat? Every time I go to an AirBNB I'm happy it's Roku since I know it will work quickly. Same w/ ZM when I get a Google Meets invite, it shows the sender is a joke. These are massive moats.
haha yea. no matter how good u are, u cant pick only winners. its crazy that she would drop billions of capital into HOOD, ZM, Roku, Tdoc etc etc while selling Apple and Tsla to raise cash. maybe her picks will work out 5 yrs from now, but she is letting her fund be exposed to insane amount of concentration, risk, and no downside hedge at all. if ARK does go bust, that will trigger massive liquidation event in tech growth stocks. many new millionaires will be made, buying tech stocks at rock bottom prices im closely watching if Ark will implode
Your welcome and remember to be patient. Next week is dicy and likely up with some sideways aka not worth risk to short then. Remember to wait till next Friday (21st) like 30min before closure to make ur move if u plan to short. Personally I’ll prolly be doing some ZM debit spreads that are two weeks out or so. Naked could also be valid just a tad bit more risky but higher reward obv. But that’s assuming I’m correct and we are green/sideways next week. I can’t predict the future or I’d be rich.
DKNG is a PoS. But there's other companies that actually make profit which have been dumped hard. ZM, COIN, LULU for example. If these stocks continue to grow revenues they could easily double or more within a couple years.
BABA - growth has slowed, fundamental fair val is around 180, but hit hard with China issues. BYND - so much competition coming on. Fair val around 40-60 NIO - has high growth potential with risk again with China. Currently fairly valued imo. SNAP - got kicked hard with iOS changes, is still as cool? SPCE - looks cool to be in the space tourism, but too early SQ - some hate the ceo, I am bullish, fundamentals would suggest 100, but so much they can still disrupt. PLTR - a black box what they do, concerns of insider selling, lots of stock compensation, but current price is fair imo to current fundamentals. PYPL - dont think this is the bottom, fair val 200-220, they can still grow more, who doesn't use this but lot of fintech pressure to compete ZM - teleconf is here to stay, if growth stags they will bottom near 100-120, but current pricing sure is back to pre-pandemic level which is looking juicy. PYPL - >prob safest BABA NIO - >if you don't fear CHINA SQ PLTR - >long holders ZM SNAP BYND SPCE - >coin toss, if you have spare change
No. Absolutely not. It is a terrible time to touch pretty much everything in your list. MAYBE the Chinese stocks will recover, but it has nothing to do with them as a company or their fundamentals. Otherwise, the only thing you listed that might be a buy at some point is ZM. It's profitable and if it falls another 20% then it's P/E will look more reasonable.
I wouldn’t put them in the same basket with the same question, more like - SPCE: pure story stock, do not involve - BABA NIO: pummelled due to China - bad narrative, will take time to recover - BYND SPOT ZM PLTR: has real business and some fundamental, oversold on all timeframe, looking for a monthly lower high, start scaling in small positions - SQ PYPL COIN: financial infrastructure of the world tomorrow, buy buy buy
The funny thing about this whole rotation is this: the companies that are going up or sideways are the companies most reliant on debt (value companies) ie, GM, F. The companies that are going down are complete unreliant on debt. Ie, SQ, ZM. This market is very disconnected to the way the economy works right now.
in general it's a great time, just remember that not all companies are great investments. ZM is falling because it didn't offer anything unique, and the world has by in large gone back to normal. the whole "nobody travels, everything is remote" trend isn't really a thing anymore. don't expect them to get back to their ATH. of the companies you mentioned, i'd be most bullish about PLTR, PTON, PYPL.
My choice is limited to **PYPL**, ZM, SQ, additionally DOCU, **MRNA**, **BNTX** as my picks for long term holding. Bold highlighted, I hold them, keep adding when they dip like today. I see we are going to Nasdaq correction (10%) territory soon. Having said that, these stock may go down further, but who knows the future, just keep adding them.
Most of these tech or “Covid” stocks have done this. Look at ZM and UPST or DKNG and PENN. My theory is many stocks that retail and institutions jumped into during these two Covid years went crazy due to the rise of retail trading from home and due to the amount of money that Covid, FED money printer, and unemployment increases gave out. Lots of bubbles are now bursting. I like HubSpot a lot as the software but could see this falling more. Ask yourself would you buy more ? If not, maybe sell or cut half and use the money in a safer investment. Or get an advisor and invest in mutual funds and earn money vs loosing on single volatile stocks. Gl man
Her third biggest holding is COIN and her fourth biggest holding is ZM, which are the ones I picked. Her biggest is TSLA. Her second biggest is TDOC, which if you agree with her logic is at the beginning of S-phase growth and will grow to be the next big tech in the next 5-10 years.
I feel ya, scalping and grinding has been the only way to go in what feels like.Nothing more humbling than losing 20%+ yet the indexes (dow and sap at least) continue to move up at a snails pace. I've been bullish growth for awhile like alot of people on here, but I know as soon as I decided to inverse they'll bounce for a day and wipe out my position (flashbacks to my ZM and SHOP puts in may) At this point I'm just lurking trying to convince myself to catch a falling knife on beaten down tech but can't find my balls and buy calls...yet We gotta wipe out mega and large cap to start fresh I suppose...been watching MSCI for awhile basically go vertical, MSCI of all things lol I'll probably be wrong but wish me luck !!!
I am unemployed atm. Here are my options for tmr: 1. Maybe i should stop playing with money? 2. Continue pretending money is fake and keep punting (My deep out of money puts on tsla are still not giving me value) so keep on adding puts and get trapped once again 3. YOLO -> Use a randomizer to pick names I want to long and short? (For tmr the randomizer says LONG PYPL, ABNB, ZM and SHORT BIIB, LCID, AAPL) I quite like option 3
She doesn't seem likable, agree! But man 2020 was good for soom GAINZ! Yes, I did some meme stocks back then, I still do though. But honestly there were a lot of pretty intuitive buys when the pandemic got real and people freaked out! CCL- MGM- ZM- etc. seemed kinda obvious. I quite dislike politicians, and the current situation; but I can talk down 2020, it was awesome for me!
Something I struggle with is that many of the FOMO stocks actually end up being good stocks to own long-term, the problem is that most don't. Take TSLA or SQ as an example, these have always had a lot of hype behind them, but have also been great stocks to own over the years. I have the same reverse FOMO feeling you're describing whenever I see a stock that's hyped here or seems very expensive, but I've learnt that feeling doesn't always serve me well. Back in 2014 I really wanted to invest in NFLX, but the price was so high and there was so much hype around Netflix back then that I figured it would probably come down and I could get in at a better valuation later. But I never got in later and I missed out on what would have been a 10x return. I felt similar about AMZN back when it was trading at a PE over 100 too. Seemed expensive and everyone was hyping about AWS at the time so I mistakenly stayed away. These days I try to assume my gut instinct is wrong and that the FOMO is right. If I can make a valuation make sense based on the FOMO narrative then it's probably worth looking into more. Stocks like NET and CRWD which are both very expensive and very hyped fall into this category for me. While I can acknowledge I'm paying a premium to own both of them, they're also great companies which in theory should be able to grow into their valuation. I could try waiting for a better entry price, but like with NFLX and AMZN I suspect I won't find a perfect time so sometimes it's better to just follow the FOMO than miss out entirely. If a stock has a mediocre product that's easy to disrupt, along with an excessive valuation and a lot of hype I find then it's generally a bad investment. Stocks like PTON and ZM fall into this category for me.
PINS: 85 to 33 (-61%) ZM: 559 to 172 (-60%) ARKK: 159 to 85 (-47%) PTON: 171 to 35 (-80%) OPEN: 39 to 12.70 (-67%) A ton of stocks have already seen big corrections. The FAANG stocks are all in 5-10% correction territory. Whats the move here? Keep shorting ARK? Crip toes are down ~30%.
Mine is ZOOM, because that story was too funny. For those few who don’t know: zoom video conferencing was going to ipo, so a bunch of people were searching for ZOOM, and bought it and inflated it a ton. But zoom video conferencing is actually ZM. Was hilarious
wrong again. Fed policy is a very significant influence but the Fed is NOT the market... you gotta be trolling at this point if you really believe that the Fed alone is all that matters. But even if you were correct, keep in mind that the biggest components of SPY are not overvalued high growth stocks that will tank 15% overnight. You're talking AAPL, MSFT, BRK.B, JPM, FB which have significant positive free cash flow and are buying back tens of billions in stock. Fed tightening and raising interest rates is unlikely to tank these stocks like what we saw with ZM, DOCU, NET, etc.. They may sell off somewhat but the damage will be manageable. Besides, there are several factors that could hamper the Fed's ability to tighten.
The problem is that the numbers aren't everything. (They are always important, but they're not necessarily determinative in certain circumstances, when retail traders have an emotional attachment to a particular company; consider AAPL or TSLA.) Sometimes a company trades based on valuation, and other times based on hype, hope, fear, or greed. When you're dealing with a "story stock," it's impossible to predict where it'll go. Prophecies become true because people *make* them come true. When there's a myth around a particular company, such as PLTR, it would be a grave mistake to underestimate it. I'm quite confident that it *will* become a trillion-dollar company for the simple reason that everyone wants it to be (and they have some very smart people and are in the right markets at the right time)! PTON never had a moat. Of course it crashed. ZM's only moat, if you can call it that, is a brand. In any case, be careful about betting against story stocks. Artem