Discussing our Zoom Valuation with Will Summerlin and Andrew Kim

Please note: as of 3/31/22, ARK’s clients own greater than 1% of the shares outstanding of Zoom Video Communications.
According to ARK’s open-source research and model, Zoom’s share price could approach $1,500, compounding at a 76 percent annual growth rate in 2026. In today’s episode, Will Summerlin and Andrew Kim talk through their thesis for Zoom, as well as their open-source Zoom model that's available on GitHub. They cover the type of top-down research that we do at ARK, as well as some of the research that they have done for Zoom. Tuning in, you’ll hear their bottoms-up analysis of Zoom as Will and Andrew dig into the modes that they believe Zoom has, as well as the competitive dynamics they think are going to play out in the communication software space. They also talk through their model and key drivers and, finally, close out with the overall AI opportunity that ARK sees playing out over the next decade and how they believe Zoom can capture some of that opportunity. For all this and more, make sure not to miss today’s conversation!
Key Points on this Episode:
The type of top-down research we do at ARK.
Understanding the opportunity for communication software in the context of hybrid work.
Why we believe Zoom is in a unique position to benefit from the trend towards AI productivity.
Our bottoms-up analysis of Zoom’s people, management, and culture; product leadership; execution; and barriers to entry.
Zoom’s infrastructure, enterprise readiness, AI data advantages, and third-party ecosystem.
The four drivers that we attribute the most important to in our Zoom model.
Unpacking the manual and Monte Carlo models of our Zoom Valuation Model on GitHub.
Our bull and base forecasts for Zoom’s top-line growth.
How we see Zoom capturing AI opportunity thanks to declining deep learning training costs, among other factors.
The interesting role AI could play in making Zoom meetings more productive.
We encourage you to download the model, put in your own assumptions, play around with it, and provide us with your feedback on Twitter!
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