Zoom Video Communications ($ZM) - Quick Stock Analysis

TL;DR

Zoom's stock has dropped significantly in the past two months, but it still remains overpriced and not recommended for investment.

Transcript

paul we've talked about zoom before you want to get after it again yeah let's go to oh zoom huh yeah zoom zoom zoom we're not using zoom right now but um let's get after it so paul we did we did we did a show on this many months ago and um when it was completely spiking and look at this now it's dropped down a bit so guys i want to show you if i to... Read More

Key Insights

• 💦 Zoom's stock has experienced a significant drop, making it less attractive for investment.
• 💦 Despite the drop, Zoom's market cap remains high, suggesting the stock is still overpriced.
• 🛀 Zoom has shown exceptional revenue growth over the past five years.
• 🤗 The company has achieved profitability and has more cash on hand than liabilities.
• 📈 Zoom's outstanding shares have decreased, reflecting a positive trend.
• ❓ The stock is not recommended for investment at its current price and may be considered overvalued.
• ❓ Patience is advised in finding stocks that fit specific criteria and are priced appropriately.

Questions & Answers

Q: What is Zoom's market cap and PE ratio?

Zoom's market cap is $100 billion with a PE ratio of 246, which indicates the stock is significantly overpriced.

Q: How has Zoom's revenue grown over the past five years?

Zoom's revenue has grown exponentially from $60 million to $622 million, showing a tenfold increase.

Q: Has Zoom achieved profitability?

Yes, Zoom has achieved profitability, with a profit of $25 million on $660 million revenue. Including the shutdown, their profit in the last 12 months is $427 million.

Q: How has Zoom's outstanding shares changed?

Zoom's outstanding shares have decreased from 237 million to 233 million, indicating a positive trend.

Summary & Key Takeaways

• Zoom's stock has experienced a significant drop of around 35-40% in the past two and a half months.

• Despite the drop, Zoom's market cap remains at $100 billion, with a high PE ratio of 246.

• Zoom has shown impressive revenue growth, increasing from $60 million to $622 million in the past five years.