I first came across Zoom in the year 2017 courtesy of my coach who is far more tech-savvy than I am. She was to help me get a hang of how to position my business on-line, which required several hands-on training sessions. So she taught me how to use zoom for seamless video communications.
With Zoom we were able to see each other online/real-time and view each other’s screen. One can also record meeting sessions for record purposes, which was very helpful for me in reviewing some of the things learned. The coolest part of the app is the feature for granting full control of your system to another remote user. In fact, zoom was bae.
I have never considered zoom from an investment perspective until the outbreak of CONVID-19. I read in a recent article that Zoom Video Communications Inc was listed on Nasdaq in April 2019 and the share price was as low as $59.94 at some points. The outbreak of CONVID-19 meant that people resorted to video communication as they tried to work from home. This led to more subscribers for zoom and other video communications platforms like Webex.
To cut the long story short, Zoom currently trades for $151.7 on NASDAQ, meaning that some investors have made 250% on this stock. These are the investors that saw the value in Zoom and took a position. This is the whole idea of value investing, where investors form an opinion on a business’s ability to make money in the future, through the products and services they render. This is in sharp contrast with stock trading which is like buying and selling stocks like any other item like groceries or farm produce.
Value investing is often a long term approach to stock investing and it also comes with a very high probability of success, if properly done. A company’s value is its ability to generate income. The trick is to look for companies whose value is lower than the market price and invest in them.
The process of identifying these companies could be rigorous because one needs to understand their business models, market position and a lot of many other factors. These factors are also subject to change, which calls for vigilance at all times.
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