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
I think Zoom is only getting the attention right now due to many people being confined to their homes and business reliance in this time of need.
Once people get back to some normality, albeit a reduced sense of normality, I think the stock will go down. Bigger companies may buy them out or compete with better offerings.
I agree that Zoom is a momentum stock right now that’s captured the mainstream video conferencing space, and do feel it’s bound for a reversal after COVID-19’s new normal begins but until then probs money to be made:
@Adam You could be right, but I think it’s safe to say MANY companies will look to keeping to a home office environment for a long time to come and potentially permanently given how many are realizing that a home office workforce can work and in many way be more cost efficient.
Also, don’t forget companies need remote conference platforms even in normal times. The covid 19 situation has basically just shown the whole commercial world who’s platform is most effective.
The daily coronavirus infection numbers are still high - mid 80,000 per day, and now countries are opening up … LOL, good luck containing the virus now folks.
I’m sure we will see a dip in the market soon, mainly when ppl get back to work and realise how screwed we all are, then Zoom might make a comeback in force once again.
No idea, just going by my gut.
If the market says we are going up … I don’t argue anymore, just ride the wave
Well, there is 2 options really, either the virus is deadly and spreading but has not infected majority due to karantene, meaning bad news.
Or we already have majority of population contracting/no symptoms, thus the mortality rate is very low and biggest wave is behind us. Meaning good news.
I am in camp B) which means alot of us had coronavirus without knowing/symptoms.
But this won’t be known until testing ramps up significantly…
The only persistent issue is the reinfection rate.
The world may survive and bounce back after the first wave is dealt with, but on the second / thrid / fourth or even annual case basis … only time will tell I guess.
Can’t wait for this to unfold, I bought in a small size whilst the prices were at some lows but i’m still keeping most at hand ready for a down turn.
all I can say is don’t invest in airliners like ryanair or easyjet anytime soon. the social distancing that will have to remain in effect past any further lockdowns means that in a row that holds 6 people, only 4 can board, and potentially every other row will need to be kept empty or just sit 2 in the middle seats diagonal from the passengers before and after them. ticket prices will thus rise to cover the loss in passenger fare.
expect cost of flying to rise accordingly except for the airliners that are primarily business/first class, which already offered more space between passengers.
I find Zoom as one trick pony (single product) and such companies have never fared well. Until another giant is going to buy them off. And its mostly likely it will another Chinese company like Tiktok or Alibaba (just imagine).
As for the household name and working from home future, yes zoom has paved the way but is not the pioneer or the best. There are other trust factor issues with with zoom that you dont get with MSFT or CSCO.
