Zoom stock surged 3% in Monday morning trading

Tiger Newspress2021-07-26

Zoom stock surged 3% in Monday morning trading.Bank of America names Zoom Video a top pick, says Five9 deal is a ‘game-changer’.

Zoom Video’s first big acquisition will help it remain a major player in enterprise software in the years ahead, according to Bank of America.

Zoom announced earlier this month that it is buying cloud contact center stock Five9 in an all-stock deal worth just under $15 billion.

BofA analyst Daniel Bartus named Zoom Video a top pick, saying in a note to clients Monday that the deal with Five9 puts two complementary businesses in an attractive bundle and is a “game-changer” for the business communications sector.

“Together, Zoom/Five9 would be the strongest [unified communications and contact center as a service] combination in the market and the move increases the competitive risks for vendors selling both, such as RingCentral and 8x8,” the note said.

Shares of Zoom fell the day after the announcement, but the stock has since recovered most of those losses.

Bank of America has a price target of $480 per share for Zoom Video, which is more than 33% above where the stock closed Friday.

Zoom was one of the best performing stocks during 2020 as the Covid pandemic produced a surge in demand for video conference software. However, the stock peaked at roughly $568 per share last October.

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Comments

  • DenisL
    2021-07-28
    DenisL
    Five9 can save the day? 
  • PhilipGoh
    2021-07-27
    PhilipGoh
    PLEASE INVEST????
  • Gaga71
    2021-07-27
    Gaga71
    Zoom in!
  • Gaga71
    2021-07-27
    Gaga71
    Zoom in!
  • YimBH
    2021-07-27
    YimBH
    Great
  • STKG
    2021-07-27
    STKG
    Yes. Zoom
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