Trade Tracker: Josh Brown buys Zoom

Investment Thesis - Josh Brown initiated a "new buy alert" for Zoom stock, citing potential growth beyond video calling [1] - The current earnings multiple is 18 times, considered a discount relative to the tech sector and S&P, with potential for rerating upon growth [1] - Morgan Stanley initiated coverage, arguing the stock isn't priced at a premium and could see significant upside with growth [1] Business Operations & Strategy - Zoom has an enterprise business providing phone numbers for companies, with 10 million users of Zoom Phone [1] - Zoom's revenue accelerator, an AI note-taking product, is gaining traction among enterprise customers [1] - The company has $8 billion in cash, providing flexibility for acquisitions and stock buybacks [1] Challenges & Risks - The stock has been negatively impacted by stock option compensation issues related to post-pandemic hiring [1][2] - Wall Street is urging Zoom to focus on shareholder value by reducing share dilution [2] - Concerns exist regarding Zoom's ability to demonstrate growth beyond its video conferencing services [1]