Why I'm SELLING Zoom | Zoom Stock (ZM) Analysis after Q3 2021 Earnings Report
Zoom Stock (ZM) has been my best performing stock position this year, but new risks facing the company have convinced me to sell some of my Zoom shares to reduce the size of my position.
Zoom has been an absolute powerhouse of a company in 2020, growing revenue over 360% year over year. They have done this through a combination of having the best video conferencing product available, executing well to scale their company in the face of increasing demand, and achieving a one-in-a-lifetime brand position by being the go-to platform for staying connected while working from home. With this incredible growth has come a similar growth in expectations, with the stock price pricing in continued growth from Zoom in the future. While the video conferencing market will continue to grow, and Zoom is well-positioned to capture some of that growth, Zoom faces several risks over the next several quarters which could hurt its stock performance in the short-term. Because of this, I have decided to reallocate some of my investment in Zoom into two higher-confidence positions in Datadog (DDOG) and Cloudflare (NET) stock.
This reduction represents how I think these companies will perform over the next year or two, but in the long term I do think Zoom will continue to be a winning investment. If Zoom can execute well in growing internationally while also releasing new successful products such as OnZoom and Zoom Phone, it still has potential to grow dramatically from where it is today.
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I am not a financial or investment advisor. Everything in this video is for entertainment purposes only.