No. of Recommendations: 24
Oh, I totally agree with you, Tinker, about Zoom:

A. When companies like Zscaler, Okta, Alteryx even Mongo, are selling mostly at about 15 times EV, with Zscaler an outlier at 20 to 25 times, and then you have Zoom at 45 times, that's just ridiculous.

B. Considering, in addition the peripheral nature of the service Zoom sells: --- useful, easy to use, etc, but it's really peripheral, video-conferencing, sitting peripherally way outside of the business software that runs the customer's business, while the other companies mentioned above are central to the actual business itself, it makes the wild valuation seem even crazier.

C. I can't buy all the good companies in the market, and I have to pick ones that I have the most confidence in. I would have probably bought a smallish position in Zoom at 20 times EV, although I would have felt it was expensive, but I would have been pulled in by the growth rate, but the current price seems to me to be just silly (I may be completely wrong, it's happened before).

I'll wait on the sidelines for now and see what happens.

Saul
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