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Five9, Zoom Terminate Merger Agreement
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Five9, Zoom Terminate Merger Agreement

Intelligent cloud contact center provider Five9 (FIVN) and Zoom Video Communications (ZM) have mutually agreed to terminate their merger agreement, as the deal failed to receive the approval of Five9’s shareholders.

Following the announcement, Five9’s shares lost 1.1% in extended trade on Thursday to close at $157.97. The stock slipped 1.2% during the day. Meanwhile, shares of Zoom rose 1.6% to close at $261.50. The stock gained another 0.4% in extended trade on Thursday. (See Zoom stock chart on TipRanks)

Based out of California, Five9 provides digital engagement, analytics, workflow automation, workforce optimization and practical AI to enhance customer experience. (See Five9 stock chart on TipRanks)

Notably, Zoom and Five9 will continue with their partnership, which has been in place before the merger announcement. The partnership includes support for integrations between their respective Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) solutions and joint go-to-market efforts.

Two months ago, Robert W. Baird analyst William Power reiterated a Buy rating on Five9 with a price target of $200 (25.2% upside potential). The analyst expects the company to record a loss of $0.18 per share in the third quarter.

Overall, the stock has a Moderate Buy consensus rating based on 4 Buys and 10 Holds. The average Five9 price target of $200.67 implies 25.6% upside potential. Shares have gained 21.1% over the past year.

Last month, BTIG analyst Matthew VanVliet assigned a Buy rating on Zoom with a price target of $460 (75.9% upside potential). The analyst expects the company to report earnings per share (EPS) of $1.07 in the third quarter.

Overall, the stock has a Moderate Buy consensus rating based on 10 Buys and 8 Holds. The average Zoom Video Communications price target of $369.67 implies 41.4% upside potential. Shares have lost nearly 46% over the past year.

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