The growth correction there ’ s a real danger that investors get trapped in this one-dimensional conversation of growth versus value .” In a broader sense , Coombs says that whether he would feel comfortable buying growth stocks after a fall depends on the resilience of their growth . For example , he says he would happily buy shares in Amazon on a short-term pullback , as it has a business model that is hard to replicate and this gives him confidence that any capital expenditure will result in superior profits .
He contrasted this with the prospects for Zoom , saying : “ I love Zoom , it ’ s a great product . The problem is , I am being forced not to use it , as it doesn ’ t sit well with Microsoft . “ Teams may not be the best video system , but the way it is integrated into Microsoft Office makes corporate land a tough market for Zoom to break into . FaceTime is free on Apple in the private space , so it ’ s hard to see Zoom charging a fee there . I think this is what gets lost , and therefore it ’ s difficult to see Zoom being around forever .”
Performance of Zoom ’ s shares since IPO
$ 600
$ 400
$ 200
$ 0
2020
2021
2022
Source : Google Finance
Issue 82 - March 2022 / 9 /