Zoom adds the value of a Telstra in a single day

It’s market cap now is US$129 billion.

Let’s not fuss about its valuation.

It just doesn’t matter that the company is trading on a P/E of 173 or 50 times revenue (2022 consensus estimates).

This is about context.

Last night, in a single trading session, Zoom added a market capitalisation of US$24 billion.

This is equivalent to the whole value of Telstra or the whole of Barclays Bank or all of Ford Motor Company’s market cap.

Rewardingly, one our portfolio stocks, Docusign (DOCU) rose 20%, either in “sympathy” or in anticipation of its upcoming quarterly earnings report.

Heck, DOCU is only trading on 28 times revenue and a P/E of 315.

These are the moments you add to your investing educational memory bank.

September 2, 2020
by Rob Zdravevski
rob@karriasset.com.au