@asifp82 pointed this out and he said I can post it for him
It is basically saying that their value should drop because their tax is 0 right now so it should be gone soonish
@tuanathans I would be hesitant to include whatever that is in the DD. There’s no source and its posted by someone who is recently banned. I even tried googling lines from the image just to see if I could find a source.
just because they were banned doesn’t mean the information is incorrect. It could be from an article or a source they have. Its also true they have very low tax rate
thanks for finding the source on the referred article. I looked for a minute and had no luck. probably because I was looking for the source of this image he copy and pasted into discord. Looks like the article is from march. The most my smooth brain can make of this is that the P/E for zoom around the time of writing of the article was crazy saturated from covid. but the last bit makes no sense, since according to the article zoom is using “tax loopholes”. Does the federal government have the ability to tax a company that they feel is abusing, in this case, foreign profits and paying executives in stock based compensation. I’m not sure what conclusion to draw from this piece other than the article seems to be a hit piece on big corp.
Hi all
This from the Nov 8th article of seeking alpha
I just posted the screenshot from here as i found it to be interesting that zoom has been giving its employees just large amount of stock
Just a sobering reminder that we are usually incredibly up on these plays only to go incredibly down on them after earnings. The research is on point here, but there is no telling how the market will react.
If you are substantially in the green heading into the call tonight, there is no shame in cutting and capturing profit. Doing that is literally the key to success in trading.
I will be on for the call tonight to help decipher the earnings themselves and hopefully the reaction will be apparent and in the direction we’re hoping for.
@Conqueror are you holding your Puts till tomorrow?
What I’m doing shouldn’t influence your decision at all.
I’m cutting some of mine by end of day. Profit is profit. Don’t turn a great trade into a bad one but not taking profit. You’re basically getting a free earnings play if you entered today or Friday. And you can still have profits before earnings. It’s been a solid play, don’t make it a bad one by getting greedy
You’ve made a lot of people a lot of money with this DD and call out, appreciate it Navi. <3
This is my fourth time playing ZM since the DD was written and all my $180-220p were 11/26 and 12/03 bought this morning. Cashed out with gains ranging from 50-100%. People who have not played earnings should be cautious and enjoy the profits. If anything, trim and let a lotto ride. Profits are too good to pass up on a slam dunk play like this one. No one should lose money from this play lol.
Test for @Conqueror
Out of ZM, will play it post earnings now.
Needed the gains for another play.
Will play again after a week or so–unless it breaks 238 AH/PreM where I’ll jump back in for another set of PUTs.
Thanks again @Navi and other fellow contributors.
I’m out of my positions in ZM, up 1500% overall. Cheers to @Navi for the incredible DD.
I just wanna call out that I said TSLA P/E ratio was more reasonable than ZM’s and not a single one of you said a word.
More bad news for Zoom today: