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Zoom: Still Just A One-Hit Wonder


  • In spite of flawless execution during the pandemic, Zoom declined more than 80% from its all-time high recorded in October 2020.
  • The ZM stock now trades around 23X Price/Free Cash Flow, which is in line with value companies like Microsoft or Google.
  • For now, I am not buying Zoom as the company is still yet very concentrated around its video-communication business, while competition from deep-pocketed companies like Microsoft is more dangerous than ever.

Global corporation online videoconference in meeting room with diverse people sitting in modern office and multicultural multiethnic colleagues on big screen monitor. Business technologies concept.

insta_photos/iStock via Getty Images

Investment Thesis

Zoom (NASDAQ:ZM) was one of the best performing stocks during 2020. It grew around 430% and then managed to lose it all. However, the company’s execution has been diametrically opposed to its recent stock performance. The company

This article was written by

28. Utterly passionate retail investor. I passed 2 CFA exams and I have a Master's degree in Finance.You can follow me on Youtube & Twitter where I post insightful company specific researchHope you enjoy my articles!

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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