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Learning, Sharing, and Teaching => Investor Alley => Topic started by: FrugalSaver on March 22, 2020, 01:09:58 AM

Title: STOCK OPPORTUNITY - Zoom vs Citrix
Post by: FrugalSaver on March 22, 2020, 01:09:58 AM
I’m trying to assess how much these companies compete. Citrix is more mature. Zoom is 2.5x the market cap of Citrix right now which seems a distortion due to corona.

Citrix made 25x the profit of Zoom last year

Could buy zoom puts or maybe lower risk sell zoom calls as things normalize

Thoughts?

Title: Re: STOCK OPPORTUNITY - Zoom vs Citrix
Post by: MaaS on March 22, 2020, 09:37:09 AM
I’m trying to assess how much these companies compete. Citrix is more mature. Zoom is 2.5x the market cap of Citrix right now which seems a distortion due to corona.

Citrix made 25x the profit of Zoom last year

Could buy zoom puts or maybe lower risk sell zoom calls as things normalize

Thoughts?

These were interesting opportunistic trades a month or two back. Now, people have piled in and the upside is limited, IMO. I would not chase these.
Title: Re: STOCK OPPORTUNITY - Zoom vs Citrix
Post by: FrugalSaver on March 22, 2020, 10:55:37 AM
I’m trying to assess how much these companies compete. Citrix is more mature. Zoom is 2.5x the market cap of Citrix right now which seems a distortion due to corona.

Citrix made 25x the profit of Zoom last year

Could buy zoom puts or maybe lower risk sell zoom calls as things normalize

Thoughts?

These were interesting opportunistic trades a month or two back. Now, people have piled in and the upside is limited, IMO. I would not chase these.

Agreed. I’m talking the opposite
Title: Re: STOCK OPPORTUNITY - Zoom vs Citrix
Post by: maisymouser on March 22, 2020, 11:11:54 AM
Generally speaking, I don't deal with individual stocks. And I was under the impression that your original post was talking about buying one of the two stocks you discussed. I'm in agreement with FrugalSaver.

If you're talking about selling one of the two, in those shoes I would sell and invest in index funds.
Title: Re: STOCK OPPORTUNITY - Zoom vs Citrix
Post by: yuppy1100 on March 22, 2020, 12:55:48 PM
Zoom is a pure play on web conferencing where as Citrix has other products besides conferencing (think VDI). Having worked in IT and for many companies, I can tell you that Zoom is eating everyone's lunch. The only conferencing system that really can stand a chance against Zoom is Webex (still used in a lot of large companies).
Title: Re: STOCK OPPORTUNITY - Zoom vs Citrix
Post by: MaaS on March 22, 2020, 06:40:07 PM
I’m trying to assess how much these companies compete. Citrix is more mature. Zoom is 2.5x the market cap of Citrix right now which seems a distortion due to corona.

Citrix made 25x the profit of Zoom last year

Could buy zoom puts or maybe lower risk sell zoom calls as things normalize

Thoughts?

These were interesting opportunistic trades a month or two back. Now, people have piled in and the upside is limited, IMO. I would not chase these.

Agreed. I’m talking the opposite

Oh wow, I'm sorry, I skimmed that and misinterpreted your point.
Title: Re: STOCK OPPORTUNITY - Zoom vs Citrix
Post by: hodedofome on March 22, 2020, 08:52:00 PM
Zoom is a pure play on web conferencing where as Citrix has other products besides conferencing (think VDI). Having worked in IT and for many companies, I can tell you that Zoom is eating everyone's lunch. The only conferencing system that really can stand a chance against Zoom is Webex (still used in a lot of large companies).

Agree. Working in the tech world, and being an investor/trader that keeps an eye out for where the industry is going, I can tell you people are either already using Zoom or they are moving to it as soon as their contract with WebEx/GoToMeeting/whoever is up.

I’d rather own the stock of the company everyone wants and pay a higher price, than get a cheaper price on a company people are moving away from.
Title: Re: STOCK OPPORTUNITY - Zoom vs Citrix
Post by: FrugalSaver on March 22, 2020, 11:20:38 PM
Zoom is a pure play on web conferencing where as Citrix has other products besides conferencing (think VDI). Having worked in IT and for many companies, I can tell you that Zoom is eating everyone's lunch. The only conferencing system that really can stand a chance against Zoom is Webex (still used in a lot of large companies).

Agree. Working in the tech world, and being an investor/trader that keeps an eye out for where the industry is going, I can tell you people are either already using Zoom or they are moving to it as soon as their contract with WebEx/GoToMeeting/whoever is up.

I’d rather own the stock of the company everyone wants and pay a higher price, than get a cheaper price on a company people are moving away from.

Agreed. It just seems there’s a huge distortion at the
Moment for a short term trade.

Just musing as trading right now can generate life changing profits if deft
Title: Re: STOCK OPPORTUNITY - Zoom vs Citrix
Post by: hodedofome on March 23, 2020, 12:37:31 PM
Zoom is a pure play on web conferencing where as Citrix has other products besides conferencing (think VDI). Having worked in IT and for many companies, I can tell you that Zoom is eating everyone's lunch. The only conferencing system that really can stand a chance against Zoom is Webex (still used in a lot of large companies).

Agree. Working in the tech world, and being an investor/trader that keeps an eye out for where the industry is going, I can tell you people are either already using Zoom or they are moving to it as soon as their contract with WebEx/GoToMeeting/whoever is up.

I’d rather own the stock of the company everyone wants and pay a higher price, than get a cheaper price on a company people are moving away from.

Agreed. It just seems there’s a huge distortion at the
Moment for a short term trade.

Just musing as trading right now can generate life changing profits if deft

Perhaps, but I'd want to see that distortion show some signs of mean reverting before jumping into anything like that. http://schrts.co/IMdWByIW

Me, I'm more of a long term tech investor, but have no problems trading if the investments aren't working out. I'd rather start something as a trade, and let it end up an investment because it kept going up for a long time (like SHOP, RNG, AMZN, CRM, etc). I have a hard time buying the stock of the product I don't really believe in. And anything not Zoom is a product I don't believe in. I see where the industry is headed like a herd.