Zoom's Bitcoin Bet: A Lifeline or Dead End?
1min read Amidst the market volatility, businesses have suffered significantly. The recent fiscal policies of Donald Trump and market panic have led to major upheaval. In this context, Eric Semler of Semler Scientific has made some notable observations about Zoom Communications. He suggested that the company should consider investing in Bitcoin (BTC) to help navigate through challenging times.
In a recent post on X, Semler shared his firm's success story. He revealed that he had acquired 3,192 BTC, valued at around $305 million, and used this investment to double Semler Scientific's stock prices. Semler believes that Zoom could replicate this model and recover from its current situation.
In his strongly worded X-post, Semler referred to Zoom as a "Zombie Zone" company, highlighting its underwhelming market performance over the last three years. According to Semler's data, Zoom's share price has fallen by approximately 40%, while the S&P 500 has underperformed by around 73%. Over the past few years, Zoom's overall S&P has lagged by an average of 84%.
Despite a forward earning multiple of 15% and a Forward EBITDA multiple hovering at 9x, Zoom's growth index has shown considerable stagnation. Semler pointed out that the company is sitting on a cash reserve of $7.7 million without a clear plan for its utilization. He suggested that investing in BTC could be a strategic move for the company, potentially catapulting its share prices and making it one of the largest corporations to hold BTC.
As of now, there has been no response from Zoom's CEO, Eric Yuan, to Semler's suggestion. However, industry experts believe that Semler's proposal makes sense and could help Zoom start its upward momentum. The crypto market continues to evolve, and businesses are exploring innovative ways to adapt and thrive in this dynamic environment.
