Zoom IPO, Why a 1000 Price to Earnings Multiple is Not Enough for This Hot Stock
The Zoom IPO is something that took place late in the year 2019, and with perfect timing to skyrocket the stock to a price to earnings multiple of over 1000. The pandemic created a significant amount of news surrounding the stock, and was able to take a $100 investment, and turn it into nearly $40,000 due to the sheer volume of the increase in the stock price in such a short period of time. Had not been for the pandemic, this IPO likely would’ve faded out of the public spotlight, but due to the sheer power of the pandemic, the stock has by far and away outperformed expectations, and now has an annual revenue north of half $1 billion a year. In this blog post, I’ll walk you through exactly how and why zoom make so much money, and whether or not their line light will fade after the pandemic ends. For more information on all things finance, be sure to comment down below and subscribe to our blog for more details and information.
Other Top Performing Pandemic Stocks in 2020 Include the Following:
Apple
Tesla
Amazon
Nvidia
QQQ
Microsoft
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Costco
Netflix
Walmart
And a host of other tech and pandemic related securities that out performed the market, read on or subscribe to our blog for additional details and information.
Why The Zoom IPO Could Possibly Go Higher, Even With a Current 1000 Price to Earnings Ratio
Okay so let’s look at the financials and the public perception of the stock Zoom right now. I think that Zoom is one of the interesting pandemic stocks that have skyrocketed, at least financially, in that it has a lot of momentum behind it on the mass psychology side of the scale, ie. people are terrified and are holding this security as a type of pandemic hedge, and people are also communicating through Zoom En Masse on everything from TV broadcasting networks, to skype calls, to office conferences.
The financials of Zoom have been incredible due to the monthly subscription business model that they are currently building, and yet they are also expected to bring in $2,400,000,000.00 for the year 2021 as the pandemic continues to rage on. This makes there valuation, as it sits currently at $137B…..not quite as crazy as it sounds, yet still also….very very overvalued. I would keep holding this stock throughout the pandemic though, at least until we get a Vaccine. Holding it any longer than that is just crazy, as their revenue is going to plummet once we are all back in the office in 4 years, and it’s Price to Earnings multiple of 700 no longer makes a whole lot of sense.
Why The Pandemic is Not Done, and Why I’m Holding Zoom Until We Get a Vaccine, At Which Point I’m Shorting It
So, the pandemic is far from over, and what I’m hearing in my office, and from many of my friend’s offices, is that management is discussing keeping people home until well after we have a vaccine, and the vaccine has been DISTRIBUTED! This means we could be home from the office as late as 2022 or 2023. Personally, I don’t think we will ever be at 100% percent of the in-office capacity that we were at before, as companies start to realize that the old 9 to 5 culture that we had for decades is now dead. The world has flipped on its side people, and unfortunately it has done so so freaking quickly that it is now terrifying for those that were used to the old world to adapt, hold Zoom and the S and P 500 and don’t hold your breath for the vaccine or pandemic to end anytime soon.
Final Thoughts on The Zoom IPO, Brought to You By The Stock Market’s Pandemic Hedge Security
So, all in all I actually like Zoom, and it is right up there with my best stock picks right now, alongside docusign, Amazon, Apple, and the Spider S and P 500 ETF. I would hold at least a very small portion of my stock portfolio in Zoom, as it is trading way above its IPO price, and is an absolute buy and hold until we get a vaccine. And by the way, as soon as a vaccine looks like it’s going to be announced, probably sometime in early 2022, you need to SELL the heck out of this stock, as it is going to pop and pop hard, put a short position on the security instead as a way to maximize profits and portfolio income during the great 2020-2023 pandemic recession. Agree with my assessment of the Zoom stock and Zoom IPO? Leave a comment down below and let us know, and be sure to subscribe for weekly finance news updates.
Cheers!
*Inflation Hedging.com
Sources:
https://www.bankrate.com/banking/cds/cd-rates/
https://money.cnn.com/data/markets/
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