Down 80%, Zoom Is A Value Stock: 20x Earnings With 25% Net Cash

Sep. 28, 2022 10:47 PM ETZoom Video Communications, Inc. (ZM)11 Comments


  • During the pandemic, Zoom soared towards $600 per share but now trades around $75 per share.
  • This used to be a bubble - now it's a value stock.
  • Zoom saw revenues grow more than 5x during the pandemic and has kept those gains - and profits.
  • The stock trades at just 20x earnings with 25% of its market cap held in net cash.
  • Zoom stock looks attractive as part of an allocation in beaten-down tech stocks.
  • Looking for a portfolio of ideas like this one? Members of Best Of Breed Growth Stocks get exclusive access to our model portfolio. Learn More »

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SDI Productions

The Zoom (NASDAQ:ZM) bubble has popped - that much has been made clear after the brutal crash from all-time highs. Yet has the selloff been overdone? I am of that opinion - while the steep deceleration in growth rates since the pandemic

Data by YCharts

revenue growth

FY23 Q2 Presentation

customer growth

FY23 Q2 Presentation


FY23 Q2 Presentation

cash and cash flow

FY23 Q2 Presentation


FY23 Q2 Presentation

consensus estimates

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This article was written by

Julian Lin profile picture
High conviction investment ideas in the winners of tomorrow.

Julian Lin is a top ranked financial analyst. Julian Lin runs Best Of Breed Growth Stocks, a research service uncovering high conviction ideas in the winners of tomorrow. 

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Disclosure: I/we have a beneficial long position in the shares of ZM, MSFT, FIVN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am long all positions in the Best of Breed Growth Stocks portfolio.

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