Bear,
Maybe the ZM question is all about perspective.
I note that in your example, you felt like 100% growth at 40 PS was “too much”.
Yet, I believe you are a proponent and supporting of DDOG, first buying close to IPO. DDOG is currently at its lowest P/S of 26 with 85% decelerating growth. Pre-COVID, DDOG was a 35-40 P/S with the same growth.
Now, is it true that DDOG is a much smaller company, absolutely. But… what is the TAM of DDOG (an application logging tool in a crowded market) vs ZM who is literally replacing conference call systems throughout the ENTIRE enterprise and education system… today… currently… right now as we speak. They are even replacing entire phone systems. It is now or never for ZM. It’s wild.
I’ve never seen so much free marketing in my life. And I am… anxiously… looking to add. I feel there is likely a short-term bubble… but I more importantly feel like there has never been a free sales motion such that we are seeing here. It is viral. Zoom is the verb for conference call.
This is my perspective of your concern with ZM vs. Saul’s excitement. If ZM is indeed still growing at 100% in 3 years then the prices will be higher than today.
However, I’m inclined to believe it pulls back at some point. Or perhaps not.
Either way, this must be how AMZN felt in the early days I have to imagine. Will it, won’t it, it can’t, could it?
Just a Fool