Charlie Munger. Caltech/Zoom
Warren Buffett's business associate embraced Zoom during the pandemic.
Charlie Munger (97) praised the video-conferencing tool for its convenience and potential growth.
Zoom CEO Eric Yuan thanked Munger for his kindness and offered him personal tech support.
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Charlie Munger (97 years old business partner of Warren Buffett), surprisingly, supported Zoom during the pandemic. Eric Yuan, founder and CEO, of the video-conferencing platform, praised the endorsement of his product by the veteran investor on an earnings call this Week.
In a CNBC interview, Munger, the vice chairman of Berkshire Hathaway said that he has fallen in love "Zoom" during a May CNBC interview. The interview was filmed at Berkshire’s annual shareholder meeting. Zoom is here to stay. It adds so many conveniences."
Munger said that he had struck a deal with Australia through the communications tool. Its prospects were also highlighted at the February Daily Journal annual meeting.
The newspaper publisher's chairman stated that "When the pandemic has ended, I don't believe we're going to go back to the way they were." "We will do a lot less traveling and a lot more zooming."
In a late June tweet, Yuan thanked Munger and expressed his gratitude for his vote. He also tipped his hat during Zoom's second quarter earnings call on Monday and offered to help with any problems the investor might run into.
He said, "I'd like Charlie Munger from Berkshire Hathaway thank him for his comments about Zoom having added so much convenience in his life."
Yuan said, "We are so happy to count Charlie as an happy user." "And I nominate Charlie to be my personal Zoom tech support, if he ever requires it."
Yuan may have Munger in his corner but Buffett is much more skeptical. He told CNBC that he was not a Zoom man in May. He continued, noting that a computer screen displaying faces of people added nothing to his experience.
Buffett said, "I prefer to have my feet on the floor, and the telephone is a very satisfying instrument."
Zoom's stock has more than doubled since 2020. This is due to the booming demand for virtual meetings and video calls during the pandemic. The company's revenue jumped 54% to more than $1 billion year-on-year last quarter, driving net income to increase 71% to $317 millions.
The stock dropped as high as 12% on Tuesday premarket trading, after the company predicted that it would generate around $1 billion in revenue for the third and fourth quarters.
