ZMD trade ideas
ZM : BASE 0 DURATION / POSITION TRADEZoom's long-term investment thesis is alive. It remains the best-of-breed for work-from-home communication solutions. Zoom has become a verb, very much like 'Skype,' 'Google,' and 'DocuSign.' This achievement alone demonstrates Zoom possesses an incredible combination of moats in branding and network effects. As it grows, it adds more value, and users will find it very hard to leave. Unsurprisingly, Zoom is now a $100B company. But it isn't going to stop.
Competitive advantage/moat
Moats are commonly categorized into four types: Network effects, low costs, high switching cost, and intangible assets.
Zoom possesses the most powerful ones, network effects, and brand name. Zoom is reliable, easy to use, and easily deployable. Zoom's net promoter score ('NPS') is incredibly high +70. Competitors do not even compare. None has the virality effect in 2020, quite like Zoom.
As Zoom expands features, use cases, and integrates deeper into other platforms, we believe Zoom would also acquire the high switching cost moat. While this moat isn't seen as necessary as the first two, it would help Zoom to retain customers and maintain a large user base to monetize.
Revenue was $777M, up 367% YoY from $167M, an acceleration of 17% from $646M in Q2'21. Q3'21 revenue was 24% higher than its entire revenue in FY20.
International revenue was 30% and grew 629% vs. 300% domestically.
Gross margin was 68.2%, a significant drop from 83% YoY and 72.3% QoQ due to a considerable increase in free users' usage, particularly in K-12 education intuitions. During the quarter, Zoom recorded 3.5 trillion meeting minutes, up 75% QoQ. Once Covid-related usage diminishes, we expect gross margin to improve towards Zoom's long-term target.
Operating margin was 37.4%, up from 12.8% in Q3 last year, and a decrease from Q2'21's margin of 41.7%. The figure is still extremely high and demonstrates exceptional operating leverage.
Free cash flow was £388M, up from $55M in Q3 last year. That's a 50% free cash flow margin (!). Management intends to maintain a high R&D budget of 10% of sales over the long-term. Thus, Zoom's high free cash flow generation allows Zoom to continue fuelling growth.
The outlook is excellent in our view. The FY21 revenue of 2.58B is a five-fold increase from FY20. Q4'21 revenue will be almost 40% higher than the entire revenue in FY20.
Remember that Zoom is a best-of-breed SaaS company that can touch everyone (almost)'s lives. In effect, Zoom is listening, watching, and collecting the most granule data from people's lives, at work and home. The data Zoom collects provides optionality long into the future. For the short to medium term, Zoom Phone, better monetization, K-12 free users' conversion, and expansion into telehealth, commerce, workflow, fitness, and internationally should provide a surprise boost to Zoom's growth.
SOURCE : Zoom: Will Surprise Your Portfolio In 2021, Multifaceted Growth Ahead, DTF CAPITAL, 06 Jan 2021, SeekingAlpha
seekingalpha.com
ZM Gapped Up Into the Supply Level of $332 - Sell It-Earnings6/1Cathy back to her shannigans.
(Opinion Only)
Strong Resistance Here at the $330 Level - Earnings Tuesday Bias is to the downside, but be flexible.
P/E = 140+
Guidance will be key on earnings.
Will be difficult with rising rates.
Covid winner - So I'm a seller..
Longterm Resistance Level Here - Seller Ahead of EarningsCathy will likely be a seller here among anyone else smart..
(Opinion Only)
Cathy Strikes Again - Sells Bags to Retail after Pre-Market PumpSame tactics in every stock she owns. Careful on this one ahead of earnings next week.
I'm a seller here.
(Opinion only)
$ZM Trade Idea$ZM Trade Idea
Entry: 325
Strike: 5/28 330c
Targets: 335, 339, 345
Support: 313, 308, 300, 293
@TradingView @KyleTrades86
Breaking ResistanceIt is interesting to see if ZM can break Fib 4.23 at 312, following breaking the Magenta gradient. If it's strong enough, it will go higher.
$ZM – Needs to Find Support$ZM seems to be in no-mans-land at the moment. It’s fallen below the 200 day EMA, it’s in between vol profiles and the trend line and fib .618 are indicating a further decent. While technical and oscillators are also bearish the falling wedge is positive and ARK is buying. Keeping an eye out for a good entry point.
NASDAQ:ZM
A Leader in the 2020 for Meeting SolutionGartner, the world’s leading information technology research and advisory firm, has positioned Zoom in the Leaders Quadrant of the 2020 Magic Quadrant for Meeting Solutions.
ZM BUY OR LONG , TARGET $500 , $600ZM It's time for us to acquire this wonderful company, initial target of $500, then update to a higher target (maybe $600) , the
pattern right now is " SHS PATTERN " , #SHSPATTERN.
More Potential downside for zoom and other tech stocks?Coming further down with news over inflation. We may see a small bounce tomorrow, but overall more downside especially for next week more than likely. It wouldn't necessarily be a crash, but it would be a large correction, especially for the tech sector and the spy.
HopeBullish Engulfing candle with good volumes can raise our hopes that this might be it. But before we make any conclusions, lets see how this trade for rest of the week.
$ZM 30m bounce trendline(see lnkd chrt)$ZM 30 min bounce from my trendline(see linked chart from past)
ZM - Bullish only if can go above 340ZM - This wave 4 correction I talked about a few months ago turned into a combination it seems and reached equality of wave W vs Y.
Price also bounced off the anchored VWAP from the wave 2 low.
But I don't recommend blindly buying right now, unless using tight stops of course, but rather wait for a confirmation that price really wants to turn first.
