iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
19,615 Blog Posts

$ZM Comes Public — So Morons Bought $ZOOM on the Grey Market and Jacked It

This is to document human stupidity. This wasn’t algos or some quant with a fat finger. This is a fat headed fool buying ZOOM on the grey market instead of ZM — because the name of the company is Zoom. God damned these people — fuck off.

Looks like the stock rampaged higher by 130%, before collapsing after buyers found out they were in the wrong stock. Taking a gander on Twitter, I see plenty of people confusing the ticker. Let’s document them now, shall we?

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One comment

  1. numbersgame

    Amusing. To be honest, the people buying ZM are likely just *slightly* more informed than buyers of ZOOM.

    Revenues, growth, profit, price? Doesn’t matter I guess.

    This company does seem to have sound fudamentals. Tons of positive cash flow and huge growth, but $0 profit. Also, Sales and Marketing costs is >50% revenue. That is unsustainable in the long run, so that means the growth rate is also unsusatianble. It’s almost imposible to guess where Revenue and S&M expenses level out, which makes prising it equally difficult.

    However, the prospectus had an assumed IPO price of $34 and now its almost double that ($63) Buyers of this stock must be geniuses to make the determination that the correct valuation is double what the company founders think it is.

    https://www.sec.gov/Archives/edgar/data/1585521/000119312519107178/d642624ds1a.htm#toc642624_5

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