It can be said that the culture of work-from-home was, to some extent, made possible by the video calling company Zoom. With the Coronavirus induced lockdown, Zoom profited greatly as it gained huge popularity. Now, this fact might be causing you the invest in the Zoom stock, but do hold on!
Qualitatively, the company is awesome, however, the same cannot be said stock-wise. Its stock trade at a high premium.
At today’s price, specialists cannot justify any investment in the company, at all.
Marco Trading Factory was one of the platforms where this idea of not being an investor in the Zoom stock was discussed. This discussion took place between the private community of investing members.
Viewing the Reality of Zoom Stock Through the Eyes of Professionals
Zoom has outperformed in the market. Its revenue was grown by 190.37% YoY, which is something to keep in mind, but it is the question of the future that is more important.
The problem for future investment is mostly related to creativity. Some investors fear that the lack of uniqueness of the app might pose a threat to the stock investors of the company. Given the features of Zoom, there is nothing that stands out against other similar apps, like Hangouts.
Things that have made Zoom a success is its market leadership and management, however, the company is devoid of strong growth potential. This would cause the Zoom stock investors to pay a heavy price even with the aforementioned qualities.
In the present technological world, replicating a simple video call app is not a big deal at all. There is also a lot of possibilities that Zoom might soon lose its charm with these services getting integrated into larger structures.
The easiness of using Zoom is something that has appealed to the people. It provides a range of possibilities with it like you can use both for professional and private purposes. But this feature is not something very complicated for any other software designers to copy. Especially with the rate of startups around the world, Zoom’s market is bound to see a dead end someday.
Not only that, the FAANG club could, at any given time, kick them out with predatory pricing. Though this is just a thin possibility.
The price of the Zoom stock may increase higher with time, irrespective of fundamentals, but it is not worth it. This is not the kind of investment that a farfetched person could go for.
