Zoom-vestigation 🔍

Zoom-vestigation

One of the biggest success stories of the pandemic has been Zoom. Yeah, it’s weird to hear that there were successful things going on during such hard times, but one man’s suffering is another one’s success. Zoom is a video conferencing platform that was used by many businesses and schools when the world went virtual during COVID lockdowns, and the company grew exponentially through that time. Even with all this success, regulators are onto Zoom for a specific acquisition they made recently.

Zoom bought telecom company Five9 for 15 billion dollars a couple of months ago, and that deal is now under scrutiny due to Zoom’s links with China. Justice Department Committee Team Telecom is now reviewing a licensing application from Zoom to see if it has any national security risks, and you might be wondering how this is harmful in any way? The US doesn’t want China to have any links to their telecom infrastructure as China could pose a major threat, and considering that Five9 deals with telecom, this deal looks very weird now. One analyst believes that Five9’s shareholders will reject the deal, but their predictions look very mixed now. The Justice Department has constantly been uncovering Zoom’s links to China in the last few months, from their CEO to an incident regarding a Tiananmen Square Protest Memorial where a Zoom employee tried to disrupt the videoconference commemorations. This leaves a very big company in a sticky situation that will have an impact on their share price. What do you think about this deal?

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.