The Steppe Eagle OEIC Ltd on Zoom Communications, Inc.
Thesis
Zoom is viewed as a high-quality product company that has expanded from video conferencing into a broader workplace platform. The fund highlights low debt, annual revenue above $4.9 billion and free-cash-flow margins above 30%, alongside the environmental benefit of reducing business travel. The principal challenge is restoring double-digit growth, but the fund viewed prices below $60 as a major buying opportunity and considers the current $80-100 area more reasonable. It remains a long-term holding in the manager's view. P(1) Harry Qelm Baabsman Steppe…
“It is a nice long-term business to hold.”
Key risks
- Difficulty returning to double-digit growth