Anyone redeploying cash from ZS?

I am just wondering if anyone is looking at more AYX? I was thinking ZM too, but it seems overdone on fear.

Sorry if this is off topic. I am not very practiced at looking at opportunities in a fearful market.

Thanks for the great board Saul.

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I am just wondering if anyone is looking at more AYX? I was thinking ZM too, but it seems overdone on fear.

Sorry if this is off topic. I am not very practiced at looking at opportunities in a fearful market.

Thanks for the great board Saul.

I sold out of ZS at about $56 with a modest gain.

I added to AYX (about 20% off recent highs and over 10% below highs from almost 6 months ago), DDOG (over 10% off recent highs after a strong earnings report) and PINS (increased bullish sentiment on this board, EV/S in single digits and about 40% off all time highs).

I don’t see significant issues specific to any of these in regards to the coronavirus.

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The virus is hopefully a transitory problem but companies who switch to Zoom because of it are likely to stick with the service long after the virus is gone. Obviously a lot of people are thinking along these lines with ZM up when everything else is down 3-5%+ today.

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My cash position (usually between 5-15%) has jumped to almost 40% currently as I recently retired (thank you, Saul’s board!) and rolled my employer 401k over into my IRA, so I’m flush with cash looking for deals. I honestly was hoping for some non-company specific issues causing temporary (who knows how long) drops. So I did enjoy seeing the Coronavirus fears causing major market angst end of last week and today especially.

I deployed 5% of my new cash today into AYX (my #1 holding), CRWD, and ROKU. AYX had such a great report, yet is now down 20% from the high it reached after the report (I realize that’s only down to where it was a month ago, but it’s also below the peak it reached in Aug 2019. And I’m continuing to build my positions in CRWD and ROKU.

Not in a hurry to deploy all the new cash, as I think between the continued CV scare (and I think that’s all it is currently), election jitters, etc, I’ll get more opportunities to get some bargains on some great investments if things continue to go down. If that happens I’ll pick up more shares of my favorites over time.

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The virus is hopefully a transitory problem but companies who switch to Zoom because of it are likely to stick with the service long after the virus is gone. Obviously a lot of people are thinking along these lines with ZM up when everything else is down 3-5%+ today.

I agree that Zoom will continue to grow rapidly…but that was already expected. I do think this run-up (almost 40% in February as other favorites are down) has over-shot any benefit ZM will receive from new virus-inspired users. The stock could very well keep running up higher, but the value of the company just hasn’t changed this much.

Zoom’s market cap is $31 billion as I type. With $540m TTM revenue, that’s a PS ratio of 57, so my guess is they would have to keep growing at a near 100% YoY clip to prove they deserve this valuation. That’s not impossible…there are endless customers they can capture, but other companies will be ding likewise, so there is a lot of work left to do…I’d call it improbable.

I took this opportunity to trim my ZM position a bit, and add to AYX.

Bear

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Good points Bear, I also trimmed my ZM and added to my AYX. To the OP, I reallocated my ZS to AYX and DDOG.

AYX seems the best valuation of the stocks on my radar - a trailing P/S of 21 is a really reasonable price for something with such ridiculous margins and growing at 50%