Zoom Stock Forecast: What Is The Impact Of Five9 Acquisition Rejection

Summary

  • Zoom's acquisition of Five9 was called off as the price no longer made sense.
  • The tech company has shown that top-line growth can be followed by healthy profit margins.
  • I expect the company to continue capitalizing on the video conferencing secular growth story.
  • I explain why I am upgrading the stock to a buy rating.
  • Looking for a portfolio of ideas like this one? Members of Best Of Breed get exclusive access to our model portfolio. Learn More »
an asian chinese beautiful woman white collar worker talking to the camera video calling video conference with his business partners with face mask

Edwin Tan/E+ via Getty Images

At the end of September, Zoom (NASDAQ:ZM) announced that it has terminated its merger agreement with Five9 (FIVN). This came after its stock showed some of its weakest relative performance in recent times. Has its “zoom” upwards come to an

For more coverage of undervalued growth stocks, including my top picks, consider subscribing to Best of Breed.

My portfolio includes over 20 stocks that I think will absolutely crush the market over the next decade.

Get access to my highest conviction ideas. 

Start Your 2-Week Free Trial Now!


This article was written by

Julian Lin profile picture
27.31K Followers
High conviction investment ideas in the winners of tomorrow.

Julian Lin is a top ranked financial analyst. Julian Lin runs Best Of Breed Growth Stocks, a research service uncovering high conviction ideas in the winners of tomorrow. 

Get access to his highest conviction ideas here


Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (22)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.