Zoom has been one of the stories of the 2020 market, but Beth Kindig argues that the key conditions - competitive edge and product devotion - are still in place.
She and her colleague Knox Ridley join us to talk competition, the technical set-up, and how to hold on to (or add to!) big winners.
We also touch on the cloud software market in general, and she calls out a big winner that may not have the same staying power.
by Daniel Shvartsman
Zoom (ZM) is one of the few who can look at 2020 and say 'what a great year!'. The stock has nearly quadrupled. The company reported what many analysts called the best software quarter ever. The product has achieved something close to verb status as people use it to reconnect with friends and family amidst quarantines, lockdowns, and travel restrictions. And while big players have increased their efforts in this field, and security questions have plagued the company to a degree as it's stepped into the spotlight, it's hard to say that any of that has dragged on Zoom's moment.
Beth Kindig has been a bull on the stock since last fall, and she and her colleague Knox Ridley join us to talk about the company's competitive position, whether its valuation matters, and how they hold on or add to their position even amidst the rally. Given their general focus on Tech Insider Research, we also touch upon the cloud software market as a whole, and Beth shares reason for concern at another high-flyer, Fastly (NYSE:FSLY), that has tracked well with Zoom. Click play to watch and stay tuned for a transcript in the coming days.
Disclosure: I am/we are long GOOG. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Daniel Shvartsman is long GOOG.
Beth Kindig and Knox Ridley are long ZM, TWLO, MSFT, and DDOG.
Nothing on this video should be taken as investment advice.
A transcript will be available in the next few days.