Zoom adds the value of a Telstra in a single day

Yesterday, the shares of Zoom Video Communications (ZM:US) rose 41% 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.

But perhaps this is the norm [sic], for Tesla (the car maker) added US$30 billion market cap the day before.

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

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