- The move to working at home is in full cry
- It will not be long before a full lockdown is in force across all major economies
- The wheels of business and education have to keep turning amid coronavirus fears
- The stay at home stock of Zoom, still has room to well….ZOOM
PLEASE NOTE…TRYING TO CALL A BOTTOM IN THE CURRENT EQUITY MARKET IS A FOOLS ERRAND, HOWEVER, ONE CAN THINK ABOUT AREAS OF POTENTIAL BENEFICIARIES.
Zoom Video Communications, Inc. (ZM or Zoom) is a provider of video-first communication platform and Web conferencing services.
It offers a cloud-native platform, which unifies cloud video conferencing, online meetings, group messaging and a software-based conference room system. This allows users to easily experience Zoom Meetings in separate physical meeting space i.e. home offices or just via a computer or smartphone.
The platform for video, audio and screen-sharing works across formats such as Windows, Mac, Linux, Android, BlackBerry, Zoom Rooms and H.323/Session Initiation Protocol room systems, such as Polycom and Cisco Tandberg.
Its solutions include Meetings, Premium Audio, Business Instant Messaging (IM), Video Webinar, Zoom Rooms and the cloud video conferencing includes full screen and gallery view, and dual stream for dual screen.
If one is worried about the security when sensitive information may be discussed the security solutions include secure socket layer (SSL) encryption and role-based access control. It offers its solutions to education, finance and government sectors.
At the start of the year there were reports that suggested Zoom would have to do much better than analyst expectations.
It may be that as successive governments introduce stay at home advice and in many cases complete lockdowns a salvation for Zoom has appeared. An increasing number of companies are holding internal conferences via Zoom. Indeed, the university I work for, University of Maryland Global Campus”, has migrated all lectures to Zoom and another training company I assist is redesigning many training modules to work via platforms such as Zoom.
Zoom is one of the so-called “Stay At Home” stocks and it has jumped 24% this month as employees working from home hold meetings on the company’s video conferencing app. That is not to say the
impressive run is over as I believe there is going to be an increasing use of this technology during this crisis. It may well have a major influence on how business is conducted in future.
Figure 1: Zoom Revenue Growth Source: © 2019 Zoom Video Communications Inc
Figure 2: Technical Levels & Extensions For ZOOM Inc. Source: www.investing.com, Spotlight Group
As I stressed at the start of the paper, buying in a market as fluid and volatile as we now are experiencing can be extremely dangerous. I am looking at stepping in to a stock like Zoom, one could also cite, Facebook (FB) the owner of WhatsApp, or Peloton interactive (PTON) for home exercise.
But I like Zoom as it is an effective means by which business can discuss and train, and academia can educate. By hook or by crook the economy has to keep grinding on, albeit at a sluggish pace. Any tool that can help business operate and keep employees and clients, educators and students safe, has to be a tool of our times.
I target 151 at first, just shy of the 61.8% extension of the recent range. Stop loss set at 119…just behind the minor mid-March dip.