ZM Is Very Cheap


I’ve had my eye on Zoom (ZM) for a couple years now as a deep value play and it’s finally getting a little love this afternoon after its 4Q23 earnings report. ZM has nearly $7 billion in cash and marketable securities on its balance sheet and no debt. That makes up more than a third of its $20 billion market cap. When you back out the cash and securities, the stock is trading for 8.4x their current year EPS guidance. The problem is that there’s no growth and the sustainability of these numbers is uncertain. ZM guided current year revenue to $4600 million from $4527 million in the just completed year – anemic 1.6% topline growth. Nevertheless, it is very cheap. They also announced a timely $1.5 billion share buyback along with today’s earnings report. The stock is currently +8% in the after hours and I will hold my small speculative position.

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