Estimated market cap of Zoom at present cost of $63 is $16.9 billion on what, $250 million or less of revenue per year (yes growing like a weed) but selling for something like 67x revenue. Sorry, that is a bubble. That is scary, particularly if someone wants to try to justify it. That is a mania, chasing a stock because you think others will chase it even higher, and they believe others will bid it higher.
Tinker.
Tinker nailed it again. I’d call 67 times revenue a tulip mania. I took a lot of the money I had set aside for Zoom and added to my Mongo at $125 or so.
Well, they did $330 million last year, (118% rev growth) and if they double revenue this year to $660 million its more like 25.6x forward revenue. Still crazy high, but not as absurd as 67x revenue. Clearly the market making institutional growth investors are expecting at least 100% revenue growth for this year. The TTM metrics are nice, but the past is past - what have you done for me lately?
Best,
Matt