Zoom's Bitcoin Boost: Expert Urges Video Giant to Revive Stagnant Stock

Zoom Communications, the popular video conferencing platform, has been advised by Eric Semler, founder of Semler Scientific, to adopt a Bitcoin strategy to boost its stock price and break through its current growth stagnation. Semler believes that Zoom is currently in a "zombie zone" and needs new growth drivers to enhance shareholder value.

Semler suggests that Zoom, with its $7.7 billion in cash reserves and $2 billion in annualized free cash flow, could quickly become one of the world's largest corporate Bitcoin holders if it enters the Bitcoin field. He points to his own company, Semler Scientific, as an example. By mid-2024, Semler Scientific adopted Bitcoin as a company asset and followed the MicroStrategy (MSTR) model, accumulating 3,192 BTC (worth approximately $305 million). Since disclosing its BTC holdings, the stock price of Semler Scientific has doubled.

Semler's proposal comes at a time when Bitcoin's price has been volatile, with recent surges and corrections. However, he believes that Zoom's entry into the Bitcoin market could provide a new source of growth and value for the company. Zoom has not yet responded to Semler's suggestion, and it remains to be seen whether the company will consider adopting a Bitcoin strategy.