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.
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).
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