This was one of the thought-provoking questions I got over the last week, and I thought to share my answer with you. I also wrote about the stocks on my watchlist.
Insightful piece. I'd be wary of $ZM because just as you said people share passwords on NETFLIX, ZM customer base of free users grew exponentially and that would require increase in running costs without directly increasing revenue. If they don't have plans to introduce some sort of Freemium model (which will be suicide now that GOOG and FB are on their tail), they may not be as profitable as the number of new users paint them to be.
Thanks, man! You are right on $ZM's user growth being predominantly free users - it might not be smart to go long just because they are adding free users - in fact, they aren't yet profitable. Also, I'm not quite sure monetizing free users is the way to go - Google Meet and Facebook Rooms are currently free.
However, over the long term, I think ZM has a fighting chance in the enterprise market. People will think twice about logging into work-related calls with Facebook.
Very insightful and informative. At such a time like this, we need more of this kind of information.
Insightful piece. I'd be wary of $ZM because just as you said people share passwords on NETFLIX, ZM customer base of free users grew exponentially and that would require increase in running costs without directly increasing revenue. If they don't have plans to introduce some sort of Freemium model (which will be suicide now that GOOG and FB are on their tail), they may not be as profitable as the number of new users paint them to be.
-FastLaneGuy
Thanks, man! You are right on $ZM's user growth being predominantly free users - it might not be smart to go long just because they are adding free users - in fact, they aren't yet profitable. Also, I'm not quite sure monetizing free users is the way to go - Google Meet and Facebook Rooms are currently free.
However, over the long term, I think ZM has a fighting chance in the enterprise market. People will think twice about logging into work-related calls with Facebook.