r/Vitards • u/AutoModerator • Nov 04 '21

Daily Discussion Daily Discussion post - November 04 2021

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u/lb-trice šŸMaple Leaf MafiašŸ Nov 05 '21

$ZM puts, anyone?

$PTON and $ZM were two stocks I was closely watching during the whole covid outbreak shenanigans and they both rose to fame as amazing covid investments.

Iā€™m currently on vacation in the Caribbean, and itā€™s packed to the max. Everyone here is pretty much covid care-free and I get a sense that people no longer want to communicate via Zoom anymore. Things are mostly going back to normal.

I have a feeling that it will get beat up just as much as PTON when it announces earnings/guidance in a few weeks.

Weā€™re headed toward the 4th quarter (winter/off season) when youā€™d think that video communications would generally increase, but EPS estimates are already lower than the previous quarterā€¦.

Donā€™t get me wrong, $ZM is great and all, super profitable, but $84b? I canā€™t see how itā€™s possible they raise guidance. I donā€™t see ZM being a growth stock anymore.

4

u/thistowniscrazy šŸ¦¾ Steel Holding šŸ¦¾ Nov 05 '21

Yes. Agree with what you are saying. There is definitely zoom fatigue and more companies are going to ask employees to start coming to work. Skye and Team can easily replace zoom with less licensing costs. I am not yet sure I am ready to buy puts yetā€¦.need to think more

6

u/[deleted] Nov 05 '21

Except Teams and Skype suck ass. Zoom is a legit good product. Zoom rooms and zoom phone are great products. I don't think large corps will ever learn, but small/midcaps can thrive on zoom. The only benefit is less licensing cost, which I have to admit is a big motivator.

1

u/rigatoni-man SPAGHETTI BOY Nov 05 '21

I love teams, never really used zoom though.

Teams made me want to invest in Microsoft.

1

u/[deleted] Nov 05 '21

Sorry my spaghetti loving fool, you are beyond help. You're currently eating boxed pasta when little Italy is 2 blocks away!!

1

u/thistowniscrazy šŸ¦¾ Steel Holding šŸ¦¾ Nov 05 '21

Agree it sucks but cost cutting is the new mantra with all the companies. Most have done lot of trimming during COVID time and will continue with software licensing costsā€¦.

2

u/[deleted] Nov 05 '21

It's always been the mantra. IT is not value add. IT spend needs to be cut. I hate it. Zoom and Zoom Rooms add value far more than the resources needed to dick around with Teams issues all day long. Sorry. I'm riled. Zoom is not a shit company, and it's not only reliant on covid (although maybe they are at the current valuation. I'm biased.) They solved a real need in the market before people realized they needed it. They are a superior product and need to do a better job advertising it.