The Zoom Enigma: Is It a Deep Value Cash Cow or a Fading Pandemic Fluke?

A sort of earnings preview

Does anyone even care about what is going on with Zoom Video Communications, Inc. (ZM) anymore? The stock has been crushed into a low-single-digit growth multiple, yet it throws off cash like an O&G company while in theory existing in a more profitable universe.

The stock has completely decoupled from its pandemic hyper-growth narrative, with the stock down more than 80% from its all-time high, but its underlying fundamentals, especially when you look beyond the noise, suggests a mispriced asset. The market is pricing it for slow, painful decline, but Zoom’s management is executing a pivot with extreme financial leverage. If they’re successful the market will no longer value it as an energy name, but instead a decent growth tech name, unlocking huge value. Let’s zoom in on Zoom and sort out if its worth the downside risks and the headache, especially with earnings this week.