Contrary to press reports of a small crowd size at his Tulsa rally, President Trump live-zoomed himself in front of a massive crowd. "This just shows what fake news will do. They lie. They say anything to make me look bad so we live-zoomed this one to the country. Unbelievable crowd. People are saying 16 billion in the crowd," stated President Trump on Fox News.
Professor of Statistics, Myron Bismet, from MIT indicated some skepticism. "According to my calculations, this is nearly 2 times the population of the world. That math gives me some pause."
Joey Scarpone, a 12 year old from upstate New York was the first on twitter with what appeared to be the explanation. "I am not sure many in the older generation understand this. But you can super-impose yourself on any background you want on Zoom. This clearly seems fake."
Joey's parents, big Trump supporters, immediately sent him to his room and have grounded him for 3 months. Bill Barr, the U.S. Attorney General, has indicated Joey may be prosecuted as an adult for something he has yet to make up.
What you can learn from this fake news
Zoom has a market capitalization of $65 billion, revenues of $2 billion and EBITDA margins of 10-20%. While this is a large multiple, revenues were 300 million just a couple of years ago and are projected to be more than 2 billion in 2022. This valuation of 30x sales may be crazy, or not, but it highlights why shorting anything based solely on valuation when fundamentals are trending up is not a good idea.
Microsoft Teams and Google Meet are targeting the video conference market. How this competition impacts Zoom over time is a key factor to monitor. A comparison of all three is here: Zoom vs. Microsoft Teams vs. Google Meet: Which Top Videoconferencing App Is Best?, PC Magazine.
FYI, the world population is approximately 8 billion people