A new development is brewed in the internet industry as Zoom Video communication faces to shake up their state strategy.
Eric Semler, Head of Semler Scientific, has noticed the pressure on the video conference giant’s Zoom, despite its substantial $ 7.7 billion cash reserve.
His advice? Explore Bitcoin as a potential strategy for reviving Zoom’s fortune.
Pandemic Star’s dramatic journey from mercy
A questionable reality has replaced the story of Zoom’s meteoric increase in the face of Covid-19. Once a Wall Street River, Zoom’s warehouse has dropped 40% over the past three years, 73% cards from the S&P 500’s performance.
Even more bleak is the company’s five -year forecast, which is below the market as a whole with over 84%; Not just numbers, but an organization that tries to make a name for itself in a post-pandemic society.
“Zoom has struggled to find a second act to reuse speed, despite aggressive reinvestment and acquisition attempts,” Semler said.
Bitcoin solution: a bold or reckless move?
Semler’s observation not only attracts interest but also draws issues among the financial industry. He did not actually chop words and described Zoom’s current status as a “Zombie” and a “sore thumb.”
Semler Scientific, its own company, has already invested heavily in Bitcoin and acquired $ 3,192, including the latest purchase of 871 units for $ 88.5 million.
Love the excitement out there for the zombie zone! There are plenty of zombie companies to choose from in different industries, but you stand out like a sore thumb – and of course it starts with Z.
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– Eric Semler (@semleRERIC) February 13, 2025
The share price for the Medical Technology Company has doubled over the past year, although attributing this to their Bitcoin strategy only to simplify questions. With access to reasonable credit terms and $ 2 billion annual cash flow, Zoom can conceivably be among the largest companies’ bitcoin holdings overnight.
BTCUSD trading at $97,035 on the daily chart: TradingView.com
Company’s State Cash Strategy encounters crypto -reality
The argument is about a fundamental issue that confronts modern companies: How should they handle their treasury in a time of flourishing digital assets?
Zoom’s current situation is paradoxical – it maintains a healthy 40% EBITDA margin and generated $ 458 million in cash last quarter, but still trading with modest multiples of 15x forward results and 9X forward ebitda. By approximately one -third of the company’s $ 25 billion stock market value It is held in cash, there is both a potential and a disadvantage.
The power of a decision
Eric Yuan, Zoom’s creator and CEO, sits in the middle of this possible metamorphosis because his unique voting shares give him unmatched influence over the company’s way.
Yuan has kept a clear silence on bitcoin while industry titans such as Tesla and strategy – formal micro strategy – have embraced it as a hedge Against inflation.
His choice can either support the conventional wisdom on cash ownership or start a radical change in the company’s treasury.
Shareholders want clarity and growth, but Zoom is stuck between innovation and inheritance. The problem is not only bitcoin but also if a company with solid roots but stopped development should enter the volatile Cryptocurrency industry to improve its market position.
As the story develops, all eyes remain on Yuan and his next feature in this high stake game with a corporate strategy.
Image from Gemini Imagen, Chart from TradingView
