Is Zoom's Opportunity Cost Too High? Why Market Conditions Led This Investor Elsewhere

Zoom Video Communications Inc ZM shares were sliding Tuesday after the company issued weak guidance during its quarterly report.

Requisite Capital Management's Bryn Talkington exited her Zoom position following the company's financial results. 

What To Know: "I would rather just look elsewhere right now," Talkington said Tuesday on CNBC's "Fast Money Halftime Report."

With growth stocks out of favor under current market conditions, she said she has to be critical, and she's concerned about the company's short-term prospects. 

"What I just can't get my arms around in terms of how they continue to increase their subscription model, is, I feel like they are really leaning into their Zoom Phone, which is a hardware device, and also international growth," Talkington said. 

Tuesday morning, Zoom CFO Kelly Steckelberg highlighted the company's "multi-year growth opportunities" through international expansion and the Zoom Phone.

Related Link: Zoom Video CFO Optimistic About Transition 'From Being A Killer App To Being A Multi-Product Platform'

Why It Matters: Talkington told CNBC that those opportunities have great potential, but it's going to take too long to play out from a trading perspective, suggesting the opportunity cost is too high.

"When there's so many companies in this high-growth space that are down 50%, 60%, 70%, I'm going to be ... very critical," she said.

"So I don't want to stick around and wait to see if they execute on the Zoom Phone. I'd rather just look around and buy some other companies that I feel more confident about their same business model that they are executing, but the market is not highlighting right now."

ZM Price Action: Zoom has traded as low as $114.26 and as high as $440 over a 52-week period.

The stock was down 7.41% on Tuesday, closing at $122.78.

Photo: courtesy of Zoom.