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

Re: Zoom CEO sold all of his common shares

#41

Post by skwirl » Thu, May 14, 2020, 4:39 PM UTC

rodw wrote: post #23

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...

Is there any way to edit the HN post title to be more accurate? "Zoom CEO sold $24m worth of stock" is still a pretty compelling headline.

Just flag it. I really don't think your proposed headline would have gotten any traction here and would have immediately dropped off the front page.

Re: Zoom CEO sold all of his common shares

#42

Post by fra » Thu, May 14, 2020, 4:39 PM UTC

BukhariH wrote: post #17

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...

He didn't exit class A, he didn't hold it in the first place. Instead, he converted a small percentage of his class B into class A, and sold it.

Re: Zoom CEO sold all of his common shares

#43

Post by MR4D » Thu, May 14, 2020, 4:40 PM UTC

xoxoy wrote: post #12

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.

That’s class A shares. He got those by converting some of his class B shares.

See footnote 18 on the table.

Re: Zoom CEO sold all of his common shares

#44

Post by ceejayoz » Thu, May 14, 2020, 4:40 PM UTC

rodw wrote: post #23

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...

Is there any way to edit the HN post title to be more accurate? "Zoom CEO sold $24m worth of stock" is still a pretty compelling headline.

> "Zoom CEO sold $24m worth of stock" is still a pretty compelling headline.

Is it? That's like a quarter percent of his holdings.

Re: Zoom CEO sold all of his common shares

#45

Post by MR4D » Thu, May 14, 2020, 4:41 PM UTC

skwirl wrote: post #41

rodw wrote: post #23

Earlier quoted context omitted.

Is there any way to edit the HN post title to be more accurate? "Zoom CEO sold $24m worth of stock" is still a pretty compelling headline.

Just flag it. I really don't think your proposed headline would have gotten any traction here and would have immediately dropped off the front page.

Good point. Also, the title violates HN guidelines.

Re: Zoom CEO sold all of his common shares

#46

Post by Bang2Bay » Thu, May 14, 2020, 4:41 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...

I see an X against 10% Owner. which means of the market cap of 46 billion Eric Yuan should own at the least $4.6 billion worth of shares. the current sale is noise (0.005 % of his shares. )

Re: Zoom CEO sold all of his common shares

#47

Post by not2b » Thu, May 14, 2020, 4:41 PM UTC

rodw wrote: post #23

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...

Is there any way to edit the HN post title to be more accurate? "Zoom CEO sold $24m worth of stock" is still a pretty compelling headline.

How about "Zoom CEO sold 0.5% of his stock", which would be just as accurate but less compelling. He sold $24m, still has roughly 4 billion.

Re: Zoom CEO sold all of his common shares

#48

Post by [deleted] » Thu, May 14, 2020, 4:42 PM UTC

xoxoy wrote: post #12

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.

[deleted]

Re: Zoom CEO sold all of his common shares

#49

Post by PowerfulWizard » Thu, May 14, 2020, 4:43 PM UTC

fra wrote: post #37

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...

Came here to say this. He started with 0 shares of class A stock, and ends with 0 shares of class A stock. What he did do is convert $23m worth of class B stock into class A stock, and sell it. Adding up all the class B stock & options he holds at the end of the transaction (Table II, column 9), he still holds ~50M shares (worth ~$165 a pop as of this writing).

Even though the title is wack I just want to thank the original poster for inadvertently causing me to learn how to interpret SEC Form 4.

Re: Zoom CEO sold all of his common shares

#50

Post by zerocrates » Thu, May 14, 2020, 4:43 PM UTC

pubkraal wrote: post #4

Is this not an action that commonly is prepared months in advance?

The filing notes that these trades are following a 10b5-1 plan, which is basically exactly that: you set up trades in advance so that you can make them without falling afoul of the insider trading rules.