Zoom, You’re Doing it Wrong! Bitcoin to the Rescue?

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Zoom Video Communications’ stock has struggled to grow despite having $7.7 billion in cash. In a post on X, Eric Semler, Chair of Semler Scientific, has urged the popular communication firm to adopt a Bitcoin strategy after his own company’s success.

Semler believes this could help Zoom grow, attract investors, and increase its stock value. Despite being a medical technology company, Semler Scientific has followed a similar strategy and has doubled its stock price over the past year. 

The Zoom Struggle in the Stock Market

Zoom’s stock increased significantly during the COVID-19 pandemic in 2020. Now, the company is growing slower and facing strong competition. In his post, Semler called Zoom a “Zombie Zone” stock, stuck with little growth. 

This is because Zoom’s stock has struggled significantly in recent years. Over the past three years, its shares have declined by roughly 40%, underperforming the S&P 500 by about 73%. Looking at a five-year timeframe, Zoom has lagged the S&P by approximately 84%. 

Despite this, the company is still profitable, with a strong 40% EBITDA margin and $458 million in cash generated last quarter. However, Zoom’s valuation remains low despite a forward earnings multiple of 15x and a forward EBITDA multiple of 9x. 

Investors worry about Zoom’s slow revenue growth and unclear plan. Many shareholders seek a clear plan, but Zoom has not provided one. Semler believes that with nearly one-third of Zoom’s $25 billion market cap held in cash, the company needs to make a bold move to regain momentum.

Bitcoin Could Change Everything for Zoom

Semler thinks buying Bitcoin could be the breakthrough Zoom needs. As reported by Coinspeaker, Semler Scientific recently purchased 871 Bitcoin units for $88.5 million, bringing its total holdings to 3,192 BTC. This investment has helped push its stock value up. 

Zoom has $2 billion in yearly cash flow and access to cheap loans. Semler believes it could become one of the biggest companies holding Bitcoin as it has the resources to make this happen.

Eric Semler also pointed out that Zoom’s founder and CEO, Eric Yuan, has the final say. Since he owns special voting shares, he can make this decision independently. However, Yuan has not publicly shared any opinions on Bitcoin. 

Love the excitement out there for the Zombie Zone!  There are plenty of Zombie companies to choose from across various industries, but one stands out like a sore thumb – and of course, it starts with Z. Zombie Zone company #1: Zoom Communications Why $ZM is the quintessential…

— Eric Semler (@SemlerEric) February 13, 2025

This has raised questions about whether he would consider such a shift. Semler’s advice for Zoom to adopt a Bitcoin strategy reflects a growing trend in the tech and finance industries. 

Companies like Strategy (formerly MicroStrategy) and Tesla have invested in Bitcoin. These firms see the asset as a way to protect against inflation and boost their financial growth. 

Recently, Coinspeaker highlighted that Strategy’s MSTR stock outperformed the broader market. The Virginia-based company achieved a 4.1% Bitcoin yield year-to-date in 2025 after a recent bet on BTC.

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2025-02-14 02:29