Zoom Video (ZM, $267.56) takeover bid rejected by Five9 shareholders
Zoom Video Communications shares climbed higher Friday, after Five9 shareholders voted to reject its $14.7 billion takeover bid.
The ongoing decrease in Zoom's share price made the all-stock proposed deal less appealing to Five9 shareholders. The deal implied a bid price of $200.28 in early July, but $144.70 when the vote took place last night. Also, Five9 investors were advised to reject the deal by proxy advisor group Institutional Shareholder Services.
“While we were excited about the benefits this transaction would bring to both Zoom and Five9 stakeholders, including the long-term potential for both sets of shareholders, financial discipline is foundational to our strategy,” said Zoom CEO Eric Yuan. “The contact center market remains a strategic priority for Zoom, and we are confident in our ability to capture its growth potential”.
"We also plan to maintain our valued existing contact center partnerships with companies like Five9, Genesys, NICE inContact, Talkdesk, and Twilio," he added.
ZM's RSI Oscillator descending into oversold zone
The RSI Oscillator for ZM moved into overbought territory on July 11, 2025. Be on the watch for a price drop or consolidation in the future -- when this happens, think about selling the stock or exploring put options.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The 50-day moving average for ZM moved above the 200-day moving average on June 11, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ZM advanced for three days, in of 287 cases, the price rose further within the following month. The odds of a continued upward trend are .
ZM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on July 10, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on ZM as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for ZM turned negative on July 10, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 40 similar instances when the indicator turned negative. In of the 40 cases the stock turned lower in the days that followed. This puts the odds of success at .
ZM moved below its 50-day moving average on June 18, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ZM crossed bearishly below the 50-day moving average on June 23, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ZM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for ZM entered a downward trend on July 07, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. ZM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.483) is normal, around the industry mean (31.531). P/E Ratio (31.271) is within average values for comparable stocks, (164.144). Projected Growth (PEG Ratio) (4.989) is also within normal values, averaging (2.732). Dividend Yield (0.000) settles around the average of (0.030) among similar stocks. P/S Ratio (4.411) is also within normal values, averaging (62.141).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ZM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
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General Information
a developer of video-first communications platform and application
Industry PackagedSoftware
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