Zoom: TAM May Be Larger Yet

ZM reported a large upside surprise for sales and earnings in its Q2, and the stock responded strongly.

• While I think the guide for Q3 and Q4 is conservative, my greater area of interest is whether ZM can go to a higher plane of operations than videoconferencing.

• In this article, I explore ZM’s founding vision, how it has performed well, and why I think its TAM is quite large and justifies the risk inherent in this high-flyer.

• I conclude with a general discussion of why high P/E growth stock investing may “work” over the long term despite some challenging fundamentals and technicals.

Read on…

post tenebras lux
For not in my bow do I trust, nor can my sword save me.


This article has some great ideas in it. I nearly ignored it just for mentioning PE, but that isn’t really part of the main body of the article.

There are a few whiffs, such as bringing up ad-based monetization when we know that just isn’t in Zoom’s plans (it was addressed again in the latest Q&A).

I love the attention given to AI and the point about ZM playing in “big data” (my words and quotes are air-quotes) by “seeing” so many faces and interactions! Really cool point!