Zoom CEO sold all of his common shares • Hacker News Board

Re: Zoom CEO sold all of his common shares

#11

Post by afrozenator » Thu, May 14, 2020, 4:33 PM UTC

No, this just seems to be selling two options.

Sec Form 4 - "C — Conversion of derivative security"

Re: Zoom CEO sold all of his common shares

#12

Post by xoxoy » Thu, May 14, 2020, 4:34 PM UTC

dkyc wrote: post #7

This is complete nonsense. He sold about $23m worth of stock [1], while he owned about 22% of stock at the time of IPO, worth roughly ~$10b in total. [1] https://www.gurufocus.com/news/1135874/zoom-video-communicat...

The very last line item on Table 1 shows 0 shares owned after his final sale.

Re: Zoom CEO sold all of his common shares

#13

Post by peapicker » Thu, May 14, 2020, 4:34 PM UTC

I think Table II seems to show he has a Trust which own another 18million shares?

Re: Zoom CEO sold all of his common shares

#14

Post by kbal11 » Thu, May 14, 2020, 4:34 PM UTC

This is a ludicrous headline. The CEO converted a tiny percentage of his class B shares to class A in order to sell them. There is nothing noteworthy here.

Re: Zoom CEO sold all of his common shares

#15

Post by mcintyre1994 » Thu, May 14, 2020, 4:34 PM UTC

How do you interpret this? The first row he acquired 70,143 at a cost of $0, and the amount he owns after that is 70,143? So he didn't have any before the 11th? Then he sells them all for $LOTS, and then acquires another 70,143 at a cost of $0, and sells them all again? Is this just him cashing out a bonus paid in class A when his actual holdings (assuming he held any before the 11th) are in some other class?

Re: Zoom CEO sold all of his common shares

#16

Post by ajay_sibri04 » Thu, May 14, 2020, 4:34 PM UTC

Doesn't even want his own company at these prices.

Re: Zoom CEO sold all of his common shares

#17

Post by BukhariH » Thu, May 14, 2020, 4:34 PM UTC

ZM has two classes of Common Stock - Class A & Class B.

Looks like Eric exited his Class A shares but he still holds over $4B+ USD in Class B.

source: https://docoh.com/company/1773298/yuan-eric-s/insider-owners...

Re: Zoom CEO sold all of his common shares

#18

Post by ptero » Thu, May 14, 2020, 4:34 PM UTC

Irishsteve wrote: post #2

I’m not able to work our from this if it’s actually all his common stock. Any idea where to get that.

It should be somewhere in the SEC filings, but a company like Morningstar (and probably many brokerages) should have this information as part of a standard stock research report.

Re: Zoom CEO sold all of his common shares

#19

Post by sp332 » Thu, May 14, 2020, 4:34 PM UTC

Irishsteve wrote: post #2

I’m not able to work our from this if it’s actually all his common stock. Any idea where to get that.

I found this https://jodie.ai/shareholder/1773298 but it still looks like random noise to me :-/

Re: Zoom CEO sold all of his common shares

#20

Post by IMTDb » Thu, May 14, 2020, 4:34 PM UTC

You cant really blame him.

Zoom is currently valued at around 60 times its annual recurring revenues. Their share price has tripled since January.

The whole crisis was a fantastic opportunity for them, but it also means that it is going to become critical for microsoft, google and all to offer a competitive product sooner rather than later, considering how many companies are going remote.

The competitive advantage of zoom is real, but how long can it last if that becomes a priority for these players. I am not saying that zoom is going to become worthless any time soon but that it's going to be very high to maintain that kind of multiple for a long period of time, especially after covid times.