No. of Recommendations: 1
Seems to date the hypothesis is creating a large sentiment of skepticism. It is tossed out there as a basis to justify what the market has done. However, given being oversubscribed by 30x, making reason out of it is not an easy task.

I shall give it some more thought Saul. I have no desire to invest in Zoom at this point in time. Even if $16 billion somehow turned out to be a steal of a deal, market volatility being what it is, it will sell for materially less than this at some point. I am sure we will talk about it much more at that point in time.

This is the best I can come up with in regard to the valuation issue. If Mobileye that is almost existential need for Intel could only go for 32x forward revenues, it seems beyond any reason for an excellent company, but hardly existential need in any manner, is worth 49x or 60x or whatever x forward revenue it is at presently.

I do think Skype is illustrative however of a comparable that is inferior (but was one of a kind at the time for the most part). 8-9x revenues was the take out price. However, the article indicates that there was rumor that Skype revenue growth had hit a wall as well at the time. That is certainly not the case with Zoom at this point.

Shall consider your thoughts and listen to what others have to say. But no, I have no interest in a Zoom investment as things stand now. Just a thought that kicked in as I was walking the dogs this beautiful spring evening.

Tinker
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.