5/20/24 - $zm - leaning +ve but not EPS layup... confusing setup
5/20/24 - vrockstar -
ZM
- as much as thef fundamental "gut" tells me this is a layup into earnings, DD FCF yields, when adj. for net cash the PE is 8-9x. in theory if the sales *don't* decline this year - that's stupid cheap. also any talk of AI tools and ppl's willingness to use/pay for additional features should send this thing. on the converse, the growth really is anemic. so timing this really seems more of a tea leaves reading exercise. the balance of risk seems skewed positively but i may fund a call spread by selling some variant of P's or related spread/ undecided just yet - where i'm willing to own this lower or eat the downside risk. tape seems willing to pause ahead of NVDA later this week, which means it's unlikely we get an x-factor unrelated to eps that moves us one way or another. lmk what you think in the comments if you have a POV. i've traded this one for some time. feels like BABA but without the growth. hrm.
ZM
- as much as thef fundamental "gut" tells me this is a layup into earnings, DD FCF yields, when adj. for net cash the PE is 8-9x. in theory if the sales *don't* decline this year - that's stupid cheap. also any talk of AI tools and ppl's willingness to use/pay for additional features should send this thing. on the converse, the growth really is anemic. so timing this really seems more of a tea leaves reading exercise. the balance of risk seems skewed positively but i may fund a call spread by selling some variant of P's or related spread/ undecided just yet - where i'm willing to own this lower or eat the downside risk. tape seems willing to pause ahead of NVDA later this week, which means it's unlikely we get an x-factor unrelated to eps that moves us one way or another. lmk what you think in the comments if you have a POV. i've traded this one for some time. feels like BABA but without the growth. hrm.