I like Zoom Video Communications (ZM:US) here, go Long at $110, 1st profit target (short term) at $125-$130, then $160.
Pro Reasons:
Work From Home (WFH) requires Video Conferencing (VC), with companies in forced lockdown, numbers are spiking exponentially!
VC App with biggest Market Share, most downloaded App in the space, week 26Mar-1Apr 3.2m downloads in US alone. (worldwide is MUCH bigger)
Market leader in "FREEMIUM" business model in VC space. (Free to use for basic, Pro or Premium requires a sub.)
VC for individuals easy for any platform, business requires screen share, storage, support and more users online at any moment, requiring subscription/pay level access.
HUGE numbers spike due to Covid19 lockdowns and business models will change in favour of ZOOM going forward
Con Reasons:
Low barrier to entry, IP is not difficult to replicate, BIG competitors in MS (Skype/Teams), Adobe, Amazon, Tencent, Slack and others...
Conversion of Free users to pay users a question, no reason to doubt, but it's still a question
Large number of nee downloads are School and other free users, still need to find a way to convert into paying subs
Security issues, hacking potential and Privacy of data policy needs to be looked at.
Trade idea:
Buy into the weakness/sell-off (from $160 to $100-$110), build a position around $110, take profits into quarterly updates, surprising market with new client numbers (note: this may not result in profits, so only sub numbers, not revenues and profits, that's the prerequisite for $160 exit...)
Pro Reasons:
Work From Home (WFH) requires Video Conferencing (VC), with companies in forced lockdown, numbers are spiking exponentially!
VC App with biggest Market Share, most downloaded App in the space, week 26Mar-1Apr 3.2m downloads in US alone. (worldwide is MUCH bigger)
Market leader in "FREEMIUM" business model in VC space. (Free to use for basic, Pro or Premium requires a sub.)
VC for individuals easy for any platform, business requires screen share, storage, support and more users online at any moment, requiring subscription/pay level access.
HUGE numbers spike due to Covid19 lockdowns and business models will change in favour of ZOOM going forward
Con Reasons:
Low barrier to entry, IP is not difficult to replicate, BIG competitors in MS (Skype/Teams), Adobe, Amazon, Tencent, Slack and others...
Conversion of Free users to pay users a question, no reason to doubt, but it's still a question
Large number of nee downloads are School and other free users, still need to find a way to convert into paying subs
Security issues, hacking potential and Privacy of data policy needs to be looked at.
Trade idea:
Buy into the weakness/sell-off (from $160 to $100-$110), build a position around $110, take profits into quarterly updates, surprising market with new client numbers (note: this may not result in profits, so only sub numbers, not revenues and profits, that's the prerequisite for $160 exit...)
High rollers can hold for previous highs (~$160), market seems to have legs, happy to lock in a solid profit for now.
Good luck!