Dear Reader,
Zoom Video Communications, the American teleconferencing application, continues its stratospheric rise.
One thesis that supports the rise of Zoom Video is that Zoom Video could become the next Facebook or the leading social network. Facebook is currently valued at 654 billion USD, while Zoom Video is trading at a market capitalization of nearly 58 billion USD currently.
It is interesting that Zoom Video provides chat services as well. Basically, every day has 24 hours and if the two hours people spent on Facebook previously get replaced by two or more hours spent on Zoom Video, Facebook could well be in trouble.
Once it has consumers' attention, Zoom Video can also provide news feed, stories and other Facebook like services. Facebook is enhancing its video conferencing services and apparently is aware of the threat.
Every day the coronavirus disease COVID-19 pandemic goes on, Zoom Video gathers pace.Yahoo and other technology companies have fallen from grace quickly. Facebook could easily share the same faith. Disrupters could become disrupted. Technology businesses are easy to scale since you have one product for everybody. However, this means that leaders can be easily dethroned. Personally, I think Zoom Video is way overvalued, but the detachment from fundamentals for the company could well run Zoom Video to 200 billion USD market capitalization in the next 2-3 years.
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Petar Vladimirov
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Petar Posledovich
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