Stock Groups

Microsoft is a better bet than Zoom at these levels, trader says


MicrosoftIt is more likely to be a good choice than ZoomThese levels are for practically every count, Gina Sanchez, Chantico Global CEO and founder Gina Sanchez says.

This week Zoom caught the attention of many people Ark Invest CEO Cathie WoodIt was “one of most significant communication companies” in decades, and she said that her company bought more shares to support it. Ark Innovation ETF(ARKK), as video conferencing stocks dropped after earnings.

Sanchez didn’t follow suit.

Cathie agrees that things are changing rapidly. “But, Zoom may not be the most effective way to do that today at current valuations,” she stated.

Zoom trades at 50x Forward Price to Earnings on Friday

Microsoft Teams, which competes with Zoom’s product directly, could provide investors a greater bang for their bucks, stated Sanchez, who is also the chief market strategist at Lido Advisors.

She said, “They have a larger user base and a lower entry price, their whole ecosystem is central.” They’ve entered the unified space. Zoom is a better choice than Microsoft, so I can’t understand why.

Delano Saporu (CEO, New Street Advisors Group) stated in the interview that Zoom may be optimistic about its longer-term prospects.

He stated that if shares are held, you must be a long-term participant. Zoom will be expanding its enterprise services, high-ticket clients and accounts. They’ll have a long-term strategy for building a solid book of services that compliments the enterprises. It’s the sticking point.

Saporu stated that Zoom’s strong growth and support for the stock nearing $200 per share suggest there might be an “opportunity” for people who think flexible work will continue to thrive.

Disclosure: Gina Sanchez (and Lido Advisors) own Microsoft stock. New Street Advisors Group has shares in Zoom.