As we all know ZOOM has received a lot of attention the past few months with most of the world now working from home. But is it really worth investing in?
Something hardly any investors or short sellers seem to know or be talking about is ZOOM’s API business. Imagine you want to create an online poker app where each player has a live video feed. To create this feature yourself is a monumental task, but with ZOOMs API you need only a few snip-its of code (for a fee) and you have yourself the feature. So now ZOOM isnt just a product for companies to have business conference calls, it opens up a whole other world of possibilities and additional revenue. Games, Apps, Telemedicine, Construction and anything, literally anything else. This is why Google maps is so successful, they make money selling the service to the likes of Uber for a fee. My point is, this side of their business seems to been completely missed by a lot of people.
Besides that, as of right now it’s safe to say ZOOM is the most intuitive video conferencing platform. Skype for business is terrible (our company of 1200 has S4B but now has ZOOM) and many others don’t offer the intuitive features ZOOM does.
What about the security issues?
Security is of course important, and the recent issues will of course need to be addressed. The facebook API issue wasn’t that significant, but the issues with their End-to-end encryption is. They will fix it, and they will be able to fix it (if it isn’t already) very quickly. A small bump in the road like all companies encounter.
Will everyone stop using Zoom once people go back to work? Well first of all, let me tell you it’s looking clearer and clearer every week that home office is going to be a normality for a lot of businesses for at least half a year, even as restrictions loosen. Furthermore, I honestly believe businesses will keep their Zoom accounts after the crisis as theirs plenty of business cases to use it even if you’re company is not doing home office.
Zoom is now a house hold name, they have a solid business strategy and I honestly think ZOOM is a great investment. But… I’ve been wrong before