To IGU, re Zoom's integrity

However, we did not design the product with the foresight that, in a matter of weeks, every person in the world would suddenly be working, studying, and socializing from home. We now have a much broader set of users who are utilizing our product in a myriad of unexpected ways, presenting us with challenges we did not anticipate when the platform was conceived.

This is what Nassim Nicholas Taleb calls “a good black swan!” While the product was designed for a small but rich market the good black swan created a huge market of smaller less sophisticated users and a set of new, unexpected use cases. Along with the good come a set of new challenges but nothing that has not been dealt with before.

My view is that those who sold based on the pre good black swan valuation made an understandable mistake, because they missed the effect of the black swan event on Zoom. I reacted about two weeks ago

The S&P 500 (down 31.9%) and NASDAQ (down 29.9%) topped out on Feb 19. There is more economic pain to come but there should be a select few winners among the carnage. Many Fools have already capitulated. Some telemedicine related stocks have done well as well as some Saul stocks (Saul is up YTD).

This past week I decided to change tactics, instead of relying on the Covered Call Selector, I’ve decided to stay long five covid-19/telemedicine stocks. Time will tell if it was a good choice.…

If my analysis is correct, Zoom has a long runway ahead.

Denny Schlesinger


The 2nd link in Ron’s post addresses Zoom’s response to E2E encryption. Apparently zoom video conferences are encrypted if accessed via zoom app but not if accessed by other options. Looks like Webex offers E2E encryption of video conferences. But Cisco is unclear if they offer it even for instances that ZM cannot. If they do then it is a security concern for Zoom that they should try and fix.……

"A few weeks ago, New York City’s 75,000 teachers scrambled to learn how to use videoconferencing services like Zoom as novel coronavirus cases began to rise and schools prepared to close their doors and institute remote learning.

Now, the city’s teachers will have to scramble once more, after Department of Education Chancellor Richard Carranza announced late last night that he had decided to ban Zoom, citing security and privacy issues with the platform.

“DOE staff and service providers should cease using Zoom as soon as possible,” Carranza wrote in an email to principals. He recommended that schools instead use Microsoft Teams, which is compliant with FERPA, the Family Educational Rights and Privacy Act. According to Chalkbeat, the DOE has started training teachers and staff in using Microsoft Teams, and will continue those trainings in the coming weeks."

I hope this doesn’t become a trend

Long ZM

1 Like