Semler Scientific Chairman Suggests Zoom Adopt Bitcoin Treasury Strategy

ChainCatcher news, Semler Scientific Chairman Eric Semler stated that Zoom Communications ($ZM) should consider adopting Bitcoin as a treasury asset to boost its weak performance and shareholder returns. Semler pointed out that Zoom's stock price has fallen about 40% over the past three years and has underperformed the S&P 500 index by 84% over the past five years, with the current valuation at only a forward P/E ratio of 15 times and EV/EBITDA of 9 times.

Despite having $7.7 billion in cash reserves (about one-third of its market value) and maintaining a 40% EBITDA profit margin, revenue growth has been sluggish, and future guidance indicates only low single-digit growth. Semler suggested that Zoom leverage its cash reserves and stable $2 billion annualized free cash flow to become a corporate holder of Bitcoin for long-term value growth, and called on CEO Eric Yuan to use his super voting rights to promote a Bitcoin strategy.