Episode 488： Zoom - The Future Of Pandemic Proof Companies
Episode Stats
Words per minute
175.49107
Harmful content
Misogyny
3
sentences flagged
Summary
Zoom went from $0 to $40.70Billion in less than a decade. How did this happen? Did the guy who started it know what he was doing? Or did he just get lucky? Today we re going to talk about how one company that got started on April 21st, 2011, and all of a sudden, is worth more than the top 7 airlines combined.
Transcript
00:00:00.000
I'm Patrick, made to be your host of Value Tim, and today we're going to talk about Zoom.
00:00:24.900
How this founder built a company less than a decade ago, and all of a sudden it went from being a small company to worth more than the top seven airlines combined.
00:00:37.160
The top seven airlines, Southwest, Delta, United, IAG, Lufthansa, American Airlines, Air France, are worth $46.21 billion.
00:00:45.500
One company that got started April 21st of 2011, nine years ago, in nine years, this company went from $0 to $48.70 billion.
00:01:00.100
December of 2019, 10 million people a day used Zoom.
00:01:14.920
That means in December, just six months ago, they can only reach the city of New York.
00:01:20.920
Only New York City knows about this one product.
00:01:23.680
Fast forward six months later, all of America uses Zoom.
00:01:28.180
If we were to put things into perspective, that's insanity.
00:01:33.220
How did this company become who they are today?
00:01:36.080
Did the guy who started it know what he was doing?
00:01:50.280
Here's the most interesting part to read about him.
00:01:53.800
Eric Wan worked in Japan for four years after graduation, inspired by Bill Gates, who worked
00:01:59.360
He moved to Silicon Valley in 1997, joined the tech boom.
00:02:02.440
At the time, Wan spoke very little English, applied nine times to be granted a visa from the
00:02:07.420
United States, upon arriving in this country, joined WebEx, which is a company that doesn't
00:02:13.420
They, I don't know how many webinars I did with them that absolutely crashed in March.
00:02:19.340
And I said, we were on the calls with their executive who said, we can't use you anymore
00:02:29.380
The company acquired by Cisco Systems in 2007, which I think for like $3.2 billion.
00:02:33.820
At the time when she became the vice president of engineering, in 2011, Wan pitched a new
00:02:38.560
smartphone-friendly video conferencing system to Cisco management.
00:02:48.140
Zoom is a publicly traded company and now Wan is a billionaire, thanks to WebEx.
00:02:57.760
A couple things about Zoom, then we're going to look at airlines.
00:03:00.280
Number one, luck, you've heard a quote, luck is where preparation meets opportunity, right?
00:03:05.480
You always hear this stuff, well, luck is where preparation meets opportunity.
00:03:08.940
So often, opportunity comes up where people can get lucky and have the biggest change in
00:03:25.400
They went from 10 million users a day to 300 million users a day.
00:03:34.960
According to TSA, if you want to come up, they can see the website.
00:03:38.280
According to TSA, okay, on March 1st, okay, we had 2.28 million people traveling every day.
00:03:45.880
March of 2019, it was 2.3 million people traveling.
00:03:52.520
If we go higher, you notice we went from 2.2 to 1.7 to 1.6 to 1.485 to 9.53.
00:04:01.400
We cracked a million, less than a million on March 17th.
00:04:16.520
The airline industry went from 2.2, 2.3 million people traveling on a daily basis all the way
00:04:26.120
The 87,000 people that traveled in a day, look what it was a year prior to that.
00:04:36.040
And then you come up and you notice we went from that 84, 87 number to now, as of yesterday,
00:04:42.300
230,000 people traveled, which is good, but it's not yet back to the million or 500,000
00:04:49.580
We are still 2.2 million travelers behind last year.
00:04:55.260
So now, when you see numbers like this, where it went from 10 to 1, from 2 million to 200,000,
00:05:06.800
Watch what happens with the stock prices of these companies.
00:05:11.340
American Airlines, the last six months, it was hovering around $27, you know, just a couple
00:05:18.420
months ago, right before March 20, around $29 to $30.
00:05:21.060
It went all the way down to, right now, you can buy a share of American Airlines for what?
00:05:29.420
Market cap dropped all the way down to $4.21 billion.
00:05:35.100
Southwest was $29.9, 20, no, actually $56 a share just a couple months ago, if you want
00:05:41.920
to buy a share, 55, 58, to now you can buy it for $29.15.
00:05:48.200
Watch this, United went from, same thing, around $88, $87, $85, $79, down to $25.
00:05:55.680
You can buy a share right now for $26, give or take, of United.
00:06:00.540
Delta was around $60, if you look at where they were at three months ago.
00:06:09.880
I say to myself, at least, I say, so let me get this straight.
00:06:13.240
They were having 2.2 million people traveling per day to now only 200,000 people traveling
00:06:19.020
per day, but the stock prices have only dropped 50%, and Warren Buffett, who owned shares on
00:06:25.260
four of them, 10% minimum, he sold all four of them.
00:06:32.520
Then it's because if we do basic math, you know how some companies, let's just say you
00:06:36.320
run a business, and you have a restaurant, they shut you down, you can't have people
00:06:50.180
You can still pivot and have some kind of money coming in.
00:06:56.640
Do airlines say, I got 50 planes sitting right here, why don't you come and rent one of them
00:07:06.780
You know, we got these people that like to take pictures and post it on Instagram.
00:07:11.220
Why don't you come and take a picture saying, I'm running this airline, look at me, I'm
00:07:23.660
Uber just announced they're letting go of another 4,000 people.
00:07:26.180
How are they going to pivot if there's not a lot of transportation taking place?
00:07:30.400
The airline industry right now is a bit overvalued right now based on some of the data that you're
00:07:38.340
The market's going to recover once we go back to traveling.
00:07:40.840
I don't know if we're going to go back to 2.2 million people traveling every day anytime
00:07:45.440
I don't even think it's going to happen that quickly in the next 30, 60, 90 days.
00:07:55.640
If the government doesn't bail out these guys and give them money, you better believe this
00:08:03.860
That means the real price without a bailout of Delta, instead of $60, it should be $6 today,
00:08:11.500
That means an American Airlines that was at $30 pre-pandemic, $28 pre-pandemic, it should
00:08:20.080
It's not worth $3 because of the bailout, not because what its value is today.
00:08:29.020
But the bailout has made it look better than what it really is.
00:08:32.080
And Powell making the rates constantly go lower and figuring out every way to bail everybody
00:08:37.220
They're playing the whole socialism on capitalism and companies and taking care of these guys,
00:08:42.160
I'm not a fan of it, but they're doing what they're doing.
00:08:46.860
No matter what business you're running, people keep asking me, Powell, what should I be doing?
00:08:59.360
Whatever business you're doing, you have to assume your business model is set up in a
00:09:12.500
When the AIDS crisis took place, nobody shut down the government.
00:09:15.940
Everybody was just more careful having sex with somebody that they just met for the first
00:09:22.860
We haven't done this in eight years, but there's a couple things that's changed in the last
00:09:30.040
We are learning in the last two months the power of media and the power of politicians.
00:09:42.860
They can tell you, California can say, if you go outside, somebody you know that's working,
00:09:48.980
snitch on them, we'll tell them off and we'll go arrest and pay a $1,000 fine.
00:09:52.140
The lady in Salem, they find her a couple thousand dollars and they threaten to find her $75,000
0.81
00:09:58.640
Or the lady here in Dallas who's not an essential business and somebody determines if you're
1.00
00:10:03.880
The reality is assume, assume if this were to happen again and you're not an essential
00:10:09.580
business, how are you going to survive during another time when the media can dictate what
00:10:17.240
And so if there's ever been a time where this word's more powerful, freedom, it's today.
00:10:22.920
And the way you get this freedom to choose how you live is by you and your family getting
00:10:29.080
Not the millions for the Lambos and the Ferraris and the Rolls and the watches and the homes.
00:10:33.880
And the $6,000 suits and the $80,000 watches and the $2,000 shoes.
00:10:40.040
I'm talking about free to choose type of millionaire.
00:10:49.040
So if you're not sitting around with your board, with your leadership team, with your
00:10:52.500
wife, with your husband, with your friends, with your peers, with your siblings, and you're
00:10:56.280
not figuring out a way to be pandemic proof, you may also very soon be looking at stats
00:11:02.680
like this where your customers may go from $2.2 million a day to $84,000 just because of
00:11:10.620
the media's control and politicians' control to enforce laws that you have no control over.
00:11:20.580
You also go make your own money so they can't tell you what to do because you get to be free
00:11:29.300
And by the way, if you haven't already subscribed to Valuetainment on iTunes, please do so.
00:11:36.760
And if you have any questions for me that you may have, you can always find me on Snapchat,
00:11:44.620
And I actually do respond back when you snap me or send me a message on Instagram.