Except on the Political Asylum board full of zealot idiots and demagogues, I don’t believe I have ever seen such a dominant string of posts on one topic. It continues today Zoom Zoom Zoom.
The stock is trading for more than 50x revenue. No, that is not sustainable. The stock boomed as a rare safe and successful place to go with this historic pandemic.
On this board, despite Saul making at least one attempt to limit the Zoom conversation, it still goes on and on and on.
Now Zoom has its numbers of downloads and users boom boom boom! But wait, most of the users will never be paying users. Use will indeed go up plentifully, but not near the numbers being flaunted here. Zoom knows it, we know it.
Then comes out the Zoom security story. Zoom will fix it, and have their Tylenol moment.
But really, is there any other momentum that could happen to propel Zoom to 70x revenues, 100x revenues? Hey, maybe the upcoming earnings will show revenue growth did climb 150%, a huge acceleration.
But lets be real here. Juniper Networks was once valued at $50 billion + on the internet build out. Qualcomm was valued at what I remember being (I can stand correcting here as those were heady days) of over $300 billion, with an analyst coming out and saying it was worth a trillion!
Of course, back then, who would have ever expected we’d see a company worth a trillion dollars.
But if all the good news is now baked into Zoom (well, we can see what earnings brings) what is to move it further?
From my perspective, for which I called Zoom a great buy at $15 billion (despite still having that huge multiple), to cheap is cheap, etc., there comes a point on the extremes when too much is too much.
I am basing this not just on the valuation issue, but on the pure mania I am seeing here. We might as well start calling this the Zoom gossip pages.
So just bringing into question, what else is there that will push the momentum for Zoom higher, thus consistent with wanting to buy into winners. Hold? I can see that, or not, Buy a new…I think that is becoming more of a question.
I put this out for conversation as what I am seeing discussed here is close to unprecedented for one name.