Zoom! For About a Minute…….

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The big earnings event last night, such as it was, was Zoom Communications. Imagine the delight of bulls and call-owners who saw their long-suffering stock explode higher the moment the earnings data was released. Huzzah!

Well, as you know, you can’t sell options after hours, so those same call-holders watched helplessly as the world slowly realized that Zoom was a flash-in-the-pan which, were it not for Covid, would have never achieved any notoriety. In short, the stock opened lower, not higher, and is grinding away at the depths.

Looking at the long-term view, the history of the company is a simple 4-act play:

  1. An IPO met with total indifference;
  2. The happy accident of Covid-19 coming along, forcing everyone to use Zoom;
  3. The dissipation of Covid, compelling people to get the hell off a platform that couldn’t stand using and get back to the office where they could actually get some work done;
  4. A return to the malaise of unimportance

At least they’re outperforming WeWork, right?