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?
Efficient Market Theory, illustrated. $ZM $ZOOM pic.twitter.com/wpFvKr3JGE
— ?PETITION? (@petition) April 18, 2019
Big IPO day ahead! Pinterest, Zoom and Greenlane all price above the expected range. $PINS $ZOOM $GNLN
— Paul R. La Monica (@LaMonicaBuzz) April 18, 2019
#IPO lovers will have a busy day today $PINS $ZOOM $GNLN
— Swat Trading (@SwatOptions) April 18, 2019
Zoom prices at $36. $ZOOM #IPO
— Ken Kamada (@kennykamada) April 18, 2019
shout out to Andre Igoudala – an investor in $ZOOM — great piece below on his extensive and impressive portfoliohttps://t.co/Kv5X4uJwsb
— Tom Hearden (@followtheh) April 18, 2019
How a GREAT IPO launch should look like. $ZOOM vs $LYFT pic.twitter.com/HTWvdf5CuW
— Crypto Tyrion? – “Hands of Steel” (@Cryptotyrion) April 11, 2019
If you enjoy the content at iBankCoin, please follow us on TwitterI’m convinced. @MadMoneyOnCNBC @CNBC @jimcramer @davidfaber you are all implicit in a bunch of people getting tricked/scammed. This is what you have at the bottom of $ZOOM which is not @zoom_us $ZM. You care about clicks, and misleading people is just part of the equation right? pic.twitter.com/gLKmMCVS3W
— Austin Lieberman (@AustinLieb) April 18, 2019
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