Zoom is living up to its name

Up >8% in premarket after >6% yesterday. It’s one of the few stocks that benefits from this epidemic.
I don’t even care about whether it’s free accounts or not as somebody raised earlier. Adoption is adoption-- they are catching tons of fish on their hook and most will stay on once they try it. I wonder how their sales team is handling the volume and whether there is any way to get a read on it.

All schools in the U.S. now are thinking about contingency plans in case we need to do all teaching online for a while. My university had a big meeting about it yesterday, and my kids’ school system sent an email about it too. It would be worth brainstorming about what other stocks benefit from this pattern aside from COVID testing, drug/vaccine manufacturers and mask makers…

I don’t know if Blackboard or INST will or not… Am not sure if schools can put in place contingency plans to switch whatever they have in place quickly enough.

BTW I just came across this article showing that another company with the lucky ticker symbol ZOOM has more than doubled in the past week:
https://finance.yahoo.com/news/zoom-confusion-strikes-again-…

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Well, can’t find any news but just flashed across my screen down about $12.00???

I think it was me that mentioned the free vs paid accounts. I agree with you that adoption is adoption. So many organizations are opening their doors to Zoom now, and I can see Zoom becoming an entrenched, dominant force. It’s already a household name. A teacher posted yesterday that his/her school was talking that day about contingency plans for if they have to cancel classes. When I was reading the post, I was in the middle of a meeting at my school on the same exact topic. I found myself wondering if we were in the same room. Crazy. At my meeting we discussed Zoom and rejected hangouts. We don’t have chromebooks; we have macs. And even though we use G Suite for education, we don’t have a package that gives students access to hangouts. Zoom is definately an option for us.

My point was more about what might happen in the immediate future. If Zoom doesn’t massively raise guidance during their earnings call next week, their stock will drop like a rock. But there is reason to believe that Zoom’s earnings will in fact be the mother of all blow outs - and today’s price will look cheap. This creates a dilemma for someone looking to initiate a position.

What is one to do if one is thinking about starting a position? Buy now, or wait until after earnings? I had funds set aside and bought 10% of what I planned to spend on Zoom when it broke out to 118. Today, when it dropped, I deployed another 40% of my Zoom funds at 109. Didn’t think it would keep dropping. I’m saving the rest for after earnings, for better or for worse.

Here’s my port
AYX 35.75%
ROKU 29.8%
ZM 13.81%
PINS 5.26%
CASH 13.79%
MELI 1.59%

I’m up 18.9% YTD. Still sitting pretty.

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I wouldn’t worry about individual stock moves right now - since the volatility is crazy. People will sell winners to buy cheap stocks - since it is very hard to avoid sticking on the price you bought a stock :wink:

Zoom has had a lot of news as a hedge against the coronavirus - that helped it rise earlier, and it may give back some of those gains, but that is noise - the question is whether it is good investment once we get out of this craziness.

FYI, I’m not in Zoom, I just think there is too much competition, but I think the over all space it is in will grow a lot, and I keep watching as it zooms away :slight_smile:

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Its just an anecdote, but I had a WeChat call with the vice-chairman of a Chinese state owned entity yesterday, and he suggested we do a t-con next week. He said he would set up a zoom and that he could host the meeting (meaning he is a paying customer).

I was a bit pleasantly surprised. Chinese state-owned entities are not known to be titans of technology adoption.

I think Zoom has absolutely been rocking since the crisis started. Who knows whether the run-up is justified, but I think we are going to see dazzling performance from them for the next two quarters.

Rob

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if schools can put in place contingency plans to switch whatever they have in place quickly enough hope this is not too OT but rapid change has never been a big part of the education establishment. Do they need video? Do they really want to encourage methods that might lead to less demand for staff? Especially at K-12 levels.
The chart on ZM looks bubble like to me, and the pop in ZOOM suggests panic buying too. But I am still holding some ZM, sold part too.

Spring will be here soon in the northern hemisphere and virus infections tend to die down then. More time spent outside ,and surprisingly viruses don’t like warm moist conditions.(unlike athlete’s foot fungus)

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