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No. of Recommendations: 19
I don't think it is fair to say Zoom is sandbagging. I think they were being conservative with an unknowable situation. The difference is that sandbagging requires an intentional under-guide (much is known and the guidance is knowingly low), while being conservative is, at least in its intention, a reasonable guess while trying to reduce the risk of reporting below expectations. I do not fault Zoom for expecting churn to counter growth considering the unprecedented growth they have already experienced. They are caught in gale-force tail-wind and keep expecting to return to a more normal breeze. I don't believe this is happening yet though. The pandemic is worse than it has ever been to date and even with positive vaccine news it will be 6-12 months before it matters for most people. I don't mean to get too macro here because I DO think what Zoom has land-grabbed will be kept for the most part. I bring it up because I don't see any micro OR macro reason things should change any time soon. They continue to perform on both sales and innovation.
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