r/wallstreetbets
PodBros fav trade, Long Semi / Short Software is about to blowup. Long the cheapest software stock I could find-ZoomInfo (GTM)
Author YOLOs 85% net worth into ZoomInfo (GTM), betting on software short covering and debt payoff via projected cash flows.
- The 'Long Semi / Short Software' trade is reversing, forcing short covering in software stocks.
- GTM is extremely oversold and priced for bankruptcy, but has a clear path to pay off its $1.1B debt with projected cash flows.
- Recent AI integration adds a potential catalyst for the heavily beaten-down stock.
- The underlying business is fundamentally poor, and the author admits hating the product.
- High debt load still poses a bankruptcy risk if cash flow projections fall short.
NOTE: 85% of my Net Worth is tied to this software company. Its down -99% from highs and -75% only this year. I hate the business and would never use their product. But if I am right, it will make me rich. Also, you're insane if you're listening to a dude obsessed with a psychology experiment.
Long semi/ short software is blowing up. I watched as my friends and their friends make millions in this trade. Music stops now. They are degrossing. Means selling semi's and covering shorts on software, effectively buying. So what did I do? Found the cheapest software stock.
Zoominfo is the cheapest, most hated, discarded left for dead software stock. No one even wants to look at it. It's kinda like me in highschool. But does GTM go bankrupt in 30 months? No chance. Is there downside to already conservative numbers? Maybe. But check the chart, what's not already priced in?
They have $1.1bn in debt, and will generate $309, $324, $366m in cashflow (total $1.1bn) in 2026-2028. I am betting everything I have that a company that generates the entire debt in next 30 months cannot possibly go bankrupt.
I am buying shares at $2.75. Looking at options too but I am too retarded to figure that out. This thing will go to $7.5 to $10.