The PE ratio might not be the best metric to judge Zoom by. Their gross profit was ~500M while net profit was only 12M almost entirely due to the SG&A line item

The PE ratio might not be the best metric to judge Zoom by. Their gross profit was ~500M while net profit was only 12M almost entirely due to the SG&A line item. At first read, they're pouring every dollar of profit into their sales/marketing organization so they can continue to grow at over 100% YoY. As a first order SWAG, the market is pricing in something like 5x growth over the next 5 years while ratcheting down SG&A as a percent of total cost. If Zoom executes successfully, they maybe ends up with a PE closer to 15. Or maybe every enterprise realizes Teams is bundled with O365 which they're already paying for and stops licensing Zoom as individuals return to the office. The implied volatility for at the money calls on Zoom expiring Jan 2022 is over 60% while the broader S&P 500 is around 20% for options with similar expiration. Seems like the risk is priced in.