Post title is false. Form shows that all of his remaining shares (>100x the amount sold) are Class B common shares, which has 10x voting rights.
Zoom CEO sold all of his common shares
31–40 of 65 posts
Re: Zoom CEO sold all of his common shares
#32Maybe he wanted a boat. Or a moat. Or maybe he wanted to buy some distressed assets. Or thought now is the right time to setup a trust for his loved ones.
Point being, people sell for so many reasons but they only buy for one reason: they think it will make them money.
It’s interesting when insiders buy big. Selling has too much noise.
Re: Zoom CEO sold all of his common shares
#33I’m not able to work our from this if it’s actually all his common stock. Any idea where to get that.
you cannot work it out from this form. it tells you what he’s selling and when it was acquired. it does look bad though
From the form, he has many many more class B shares that he didn’t sell. This was only a small proportion - maybe he’s buying a yacht?
Re: Zoom CEO sold all of his common shares
#34Is this not an action that commonly is prepared months in advance?
Yes. From the looks of it, the CEO is just selling a previously-negotiated award on the date of acquisition. He has been awarded, then immediately sells roughly 70,000 shares a day over two days, along with exercising some options.
Table II shows that he still (indirectly) owns around 24 million shares of Class B stock and 130k options.
This is a nothingburger.
Re: Zoom CEO sold all of his common shares
#35I’m not able to work our from this if it’s actually all his common stock. Any idea where to get that.
you cannot work it out from this form. it tells you what he’s selling and when it was acquired. it does look bad though
I do not see why it looks bad. As others said, he sold a tiny percentage of holdings, which is a standard setup for many executives (with sale notifications filed with SEC months in advance)
Re: Zoom CEO sold all of his common shares
#36This 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.
If he has stock worth $10 billion, it's insignificant.
Re: Zoom CEO sold all of his common shares
#37This 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).
Re: Zoom CEO sold all of his common shares
#38This 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.
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Re: Zoom CEO sold all of his common shares
#39I’m not able to work our from this if it’s actually all his common stock. Any idea where to get that.
The very last line item on Table 1 shows 0 shares owned after his final sale.
That’s class A shares, which are publicly traded. He also has many class B shared which are not publicly traded but have 10X voting power. This was just selling a bit of the company to get some available cash.
Re: Zoom CEO sold all of his common shares
#40This 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 some artifact of the form or the reporting requirements.
Per their Mar 20 2020 10k [1], Eric holds
> As of January 31, 2020, our founder, President and Chief Executive Officer, Eric S. Yuan, together with his affiliates, held approximately 16.5% of our outstanding capital stock
[1] https://investors.zoom.us/static-files/09a01665-5f33-4007-8e...