Zoom Has Zoomed – But Can it Continue for Much Longer?

ZOOM-$ZM-Short-Internet-Bull-Report

Demand for ZOOM Technologies, Inc. (NASDAQ: $ZM) and its video conferencing platform has surged and its stock price has moved up substantially since the beginning of the year (131%).

As efforts to halt the spread of COVID-19 have forced millions to stay at home, many have turned to Zoom to set up online meetings.

Zoom usage rose from 10 million daily meeting participants, one year ago, to over 300 million today. A true feast for hackers.

Yet, it not quite certain how Zoom is actually counting their users/visitors. It may turn out to be a play on words. “Zoom could count the same person five times if they attend five Zoom meetings in a day.”

NASA, Apple (AAPL), SpaceX, and many investors are choosing to ditch Zoom.

Zoom has nowhere to go but down ?

The company went public in March last year, opening at $65 per share.

Today, it is trading at $158.80 with a forward P/E ratio of 1650.25 (!) – Absolutely obscene.

At its peak, Facebook had a 35X earnings multiple (read our call on shorting facebook).

We call the BS, and suggest shorting Zoom ($ZM).
IBR price target $58.

[stockdio-historical-chart stockExchange=”NYSENasdaq” width=”650″ symbol=”ZM” displayPrices=”Lines” performance=”true” from=”2020-01-01″ to=”2020-04-24″ allowPeriodChange=”false” height=”450″]

 

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Luka Marjanovic

Partner

Luka holds a Bachelor’s in International Business and a Master’s in International Management. During his undergraduate studies he worked as a research assistant in the field of Big Data; founded his own consulting firm providing services to local SME's in various sectors and invested in the capital markets; as well as working pro-bono providing education and career counselling. Prior to his business education, he studied Biology-and-Biotechnology, and served in the Danish Royal Army as Second Sergeant, leading and managing a group under extreme conditions and pressure. Luka has spent significant time abroad, living and working in seven different countries. When he's not in the office, he's chasing the next gusts windsurfing, carving the mountain snowboarding or out in the forest for a jog.