Zoom’s purchase of Five9 could total $1.4 billion

During yesterday’s session, we learned the news that the popular videoconferencing application Zoom has reached an agreement for the acquisition of Five9 for a total of $14.7 billion in an operation that could be completed during the first half of 2022.

Five9 is an American provider of cloud services through its Virtual Contact Center (VCC) platform that allows users to simultaneously and in an optimised way manage customer interactions through voice, chat, e-mail, social networks and channels through mobile devices. Therefore, with this acquisition, Zoom seeks to increase its presence among the companies’ customers, thus allowing it to increase its long-term growth.

Like Zoom, in recent years Five9 has experienced a strong revaluation in the stock market that led it to mark all-time highs on March 1 of around $198 per share.

In previous analysis on Zoom, we could see how this company has obtained excellent results both in 2020 and in its first fiscal quarter corresponding to 2021, so this acquisition could further strengthen its growth.

Over the past year, Zoom has been one of the biggest players in the market, thanks to the rise of telecommuting and virtual meetings between friends due to the pandemic. Despite this, since it marked all-time highs on October 19, 2020 at $588.84 per share, the price action is experiencing a clear downward trend that led the price to mark annual lows around $277 per share, although finally during the first half of the year this company experienced a rise of 14.74%.

If we look at the daily chart, we can see that the price is currently struggling with its important support level in its 200-session moving average (red) after breaking down the upside channel that had been following from the annual lows after the accumulated overbought.

The loss of this important level of support could open the door to a further correction that could take the price up to $300 per share or even to annual lows.

On the contrary, if it manages to maintain this level of support it could form a new upward momentum, although as we can see in the daily chart, the price would have to face several levels of resistance to consolidate this possible new upward momentum.

blankSource: Daily Zoom chart of Admiral Markets’ MetaTrader 5 platform from March 3, 2020 to July 20, 2021. Held on July 20 at 10:00 am CEST. Note: Past performance is not a reliable indicator of future results or future performance.


Evolution of the last 2 years:

  • 2020: 395.77%
  • 2019: -6.11%


With the Admirals Trade.MT5 account, you can trade Contracts for Differences (CFDs) on Zoom and more than 3000 stocks! CFDs allow traders to try to profit from the bull and bear markets, as well as the use of leverage. Click on the following banner to open an account today:

Trade With MetaTrader 5


The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following: 

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
  3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
  4. The Analysis is prepared by an independent analyst, Javier Olivan (analyst), (hereinafter “Author”) based on their personal estimations.
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
  6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.

Source: https://admiralmarkets.com/analytics/traders-blog/zoom-five9-20-july?regulator=jsc

Spread the love

Related Articles

Leave a Reply

%d bloggers like this:

Our website uses cookies and thereby collects information about your visit to improve our website (by analyzing), show you Social Media content and relevant advertisements. Please see our cookies page for furher details or agree by clicking the 'Accept' button.