Saul called it on Monday:
“Zoom may zoom, actually see a considerable benefit, as companies will prefer remote conferencing with no need for travel, and especially with no chance for contagion.”
Good call! I don’t think anybody expected ZM to zoom the very next day, but Microsoft Teams experienced an outage yesterday because the development/operations team forgot to renew the certificates: https://www.theverge.com/2020/2/3/21120248/microsoft-teams-d…
Just a reminder that ZM is not facing the ‘almighty’ Microsoft as a competition. It just faces a small department within the company that might not even contain Microsoft’s best crew.
Another reason for the share to pop was the record usage amid coronavirus fears.
zoom Ceo, Eric Yuan, came on mad money show on CNBC.
see the link below:
Following key points from the interview:
" products are seeing ‘record usage’ as stock pops 15% amid coronavirus fears"
“I had to shut down my phone, because, actually, almost everyone is calling us,” given the coronavirus, Zoom Video Communications CEO Eric Yuan said.
“If you cannot travel … you need to have a very reliable secure tool like Zoom” and product usage “is very, very high since the last of the month, last week. Almost everyday, that’s a record usage,”
“Ultimately, almost every company, they need to have a tool like this. I think that based on IDC estimates by 2023 that’s a $43 billion market,”