As a comparison of Slack’s market cap to all the companies in the portfolio (see table attached), it is already valued higher than all of them except SQ…comparing it to TWLO, the closest size, is a tough comparison. TWLO is sustaining a higher 88% revenues growth rate, is at a run rate to exceed $1B in revenues annually, is already profitable and cash flow positive, and has about $1b in cash (and growing). Slack does have higher margins, but that does not quite compensate for the remaining items….(3 hour flight from Germany to Spain today has turned into a 20 hour slog through airports, delayed and missed flights, multi hour taxi rides and a missing bag they will hopefully deliver tomorrow…we are due to arrive at our rental at oh-dark-hundred hours…3am….ugh! On the bright side, there is a very high probability tomorrow will be a better day! 🥴)
User comment: On the brighter side, you’re in Spain! Thanks for the insight on Slack!
Victor: Even a blind squirrel finds a nut sometimes!
On June 21, I posted that I was selling my small ZM position that I had picked up in their IPO a few weeks earlier. This is not one of my 7 long-term (more than 1-year) positions and it was a very small, less than 2%, position. The stock shot up 300% very quickly. You can read the post above, but I did not see a moat around their technology or the ability to 5X themselves and felt the surge was overdone. I sold at $104 on that day they hit a high. Today, Goldman bank seems to agree with me. Not that I follow analysts… I actually try to beat them to the punch and often we do not agree. I got lucky this time. Not saying ZM will not turn around and go North again, especially if the market does, but I’m happy to be out of this one as it touches low 80s today. Cheers!!
Zoom Video -3% as Goldman questions valuation
