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No. of Recommendations: 38
At any rate, a 4% drop for a stock that is up over 100% year-to-date, seems to show that the market doesn't consider this a threat to Zoom's eventual success.

That’s about the worst possible rationalization I can think of. WorldCom bubbled with rumors and warnings about the telecom bubble for almost two years before the roof fell in. Madoff ran his operation for decades. I was an early investor in @Home, in which I lost a bundle, and AOL in which I made two bundles (selling before the crash) and at many points you could have pointed to either and said “See? The market doesn’t care.”

NOTE: I am NOT saying that Zoom is a scam, that it will crash, or anything else negative about the company, I simply don’t know. I am saying that the market price is a terribly unreliable data point on which to hang an argument about any company. The market favors short term profit over long term health, moral, or any other factor. Other things may come into play over time, but “the market” has no prescience over tomorrow, whether the public will be concerned about privacy, regulators will step in, or anything else.

Zoom seems poised for big things. With big things comes big scrutiny. Facebook has seen how that works as it has grown from baby steps to behemoth. Don’t discount the bad news on the basis of “price”, discount it if you know or intuit something the rest of the world doesn’t know.
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