Zoom: A Cheap Stock With Lots Of Cash

Geoffrey Seiler
4.44K Followers

Summary

  • Zoom faces renewal risks post-pandemic, as companies prefer their employees to work in offices.
  • The company is expanding from a video conferencing product to a comprehensive communication and collaboration platform, including chat features, cloud-based phone systems, and contact center offerings.
  • Zoom has also made strategic acquisitions such as Workvivo and Solvvy to enhance its product offerings and drive growth.

Talking and working on video calling

seb_ra/iStock via Getty Images

While Zoom Video Communications (NASDAQ:ZM) faces some renewal risk following the pandemic, the stock is cheap and the company is flush with cash.

Company Profile

ZM operates a video communication and collaboration platform. Its foundational product

This article was written by

4.44K Followers
Former Senior Equity Analyst at $600M long-short hedge fund Raging Capital.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ZM over the next 72 hours. 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.

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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