Zoom Video: Zooming Too Far
Zoom Video is priced for unsustainable trends plus the video conferencing tools isn't ready for privacy issues. The stock is worth double and triple a similar group of companies benefiting from the work-from-home economy. The stock trades at an unsustainable 40x FY21 sales. As the market has collapsed this year due to the coronavirus outbreak, Zoom Video Communications ( ZM ) has soared. The company benefits from the virtual economy and reportedly has seen mobile active users up over 150% in March. The problem here is that the stock is priced for a virtual only world where users never return to normal trends. Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details.