Five9 Shares Slip 15% As Zoom Video User Growth Slows
Shares of Five9, Inc. (FIVN) are slipping nearly 15% on Tuesday morning after Zoom Video Communications, Inc. (ZM) reported its second-quarter results, with user growth slowing down compared to pandemic era. Zoom also issued an outlook for the third quarter that is expected to miss current estimates.
FIVN is currently trading at $158.11, down $26.72 or 14.46%, on the Nasdaq, on a volume of 4.2 million shares, above average volume of 1.3 million shares. For the 52 week period, the stock has traded between $107.98 and $211.68. Five9 shares have gained over 25% in that time frame.
In July, Zoom Video agreed to buy Five9, a provider of the intelligent cloud contact center, in an all-stock transaction valued at about $14.7 billion.
Zoom’s user growth has slowed down compared to the sharp rise recorded during the pandemic. In second quarter of 2021, the number of customers with 10 or more employees soared 458% to 370,200 from 66,300 a year ago. However, the growth slowed in the second quarter of 2022 to 36%, with the company reporting 504,900 customers with more than 10 employees.
The communications technology company expects third-quarter revenues of $1.015 billion to $1.020 billion and adjusted earnings of $1.07 to $1.08 per share. Wall Street analysts were looking for earnings of $1.09 per share on revenue of $1.01 billion.
Chicago Business Barometer Drops More Than Expected In August
MNI Indicators released a report on Tuesday showing a significant slowdown in the pace of growth in Chicago-area business activity.
The report showed MNI Indicators’ Chicago business barometer slumped to 66.8 in August from 73.4 in July, although a reading above 50 still indicates growth. Economists had expected the index to drop to 68.0.
The slowdown in the pace of growth came as firms said the available supply of raw materials and workers isn’t sufficient to keep up with new orders.
The order backlogs index surged up 11.6 points to 81.6, the highest reading since 1951, as firms reported a shortage of materials, freight inconsistencies, and insufficient staff.
Meanwhile, the report said the production index tumbled by 7.8 points to 61.0, while the new orders index slid 4.4 points to 67.8.
The prices paid index increased 2.3 points to 93.9, hitting the highest level since 1979, as companies continued to report higher costs for production materials.
Gold Edges Higher As Dollar Weakens
Gold prices edged higher on Tuesday to hover near one-month high as the dollar weakened and Treasuries held steady reflecting concerns of a slower recovery from the coronavirus pandemic.
Spot gold edged up 0.3 percent to $1,815.70 per ounce, after hitting its highest since Aug. 4 on Monday at $1,822.92. U.S. gold futures were up 0.3 percent at $1,817.90.
The dollar was trading near three-week lows against a basket of currencies while the yield on the 10-year benchmark traded around 1.28 percent.
Global stock markets are setting new record highs as hopes for more policy support overshadowed economic risks from a surge in COVID-19 cases and concerns over China’s regulatory clampdown on private industries.
Growth worries resurfaced after official data showed China’s services sector contracted in August for the first time since the height of the pandemic early last year.
China’s factory activity also expanded at a slower pace in August as businesses and the broader economy came under increasing pressure due to domestic COVID-19 outbreaks, high raw material prices and slowing exports.
Investors now look to August U.S. non-farm payrolls data due later this week for more clues on the Fed’s tapering strategy.
Pre-market Movers: FCUV, BXRX, LAIX, VALN…
The following are some of the stocks making big moves in Wednesday’s pre-market trading (as of 5.45 A.M. EDT).
In the Green
Focus Universal Inc. Common Stock (FCUV) is up over 54% at $7.89
Baudax Bio, Inc. (BXRX) is up over 21% at $0.77
LAIX Inc. (LAIX) is up over 15% at $1.36
Atai Life Sciences N.V. (ATAI) is up over 8% at $17.77
RenovoRx, Inc. (RNXT) is up over 7% at $10.70
China Online Education Group (COE) is up over 7% at $3.40
Ambarella, Inc. (AMBA) is up over 7% at $111.01
Skillz Inc. (SKLZ) is up over 6% at $12.56
EyeGate Pharmaceuticals, Inc. (EYEG) is up over 5% at $1.94
In the Red
Valneva SE (VALN) is down over 10% at $47.28
Lucid Group, Inc. (LCID) is down over 7% at $18.38
Elys Game Technology, Corp. (ELYS) is down over 7% at $6.12
So-Young International Inc. (SY) is down over 7% at $5.39
Mesoblast Limited (MESO) is down over 6% at $6.08
Siyata Mobile Inc. (SYTA) is down over 4% at $4.25
Perpetua Resources Prices US$50 Mln Public Offering At US$5.25 A Share
Gold miner Perpetua Resources Corp. (PPTA) on Friday said it priced the underwritten public offering of 9,523,810 common shares in the United States and Canada, at US$5.25 per share.
All the shares are being offered by the company and it expects gross proceeds of around US$50 million.
The Offering, subject to listing on the Nasdaq and TSX, is expected to close on or about August 17.
The underwriters have been granted a 30-day over-allotment option to purchase up to an additional 1,428,572 common shares representing up to 15% of the offered shares.
The Company which is focused on the exploration, site restoration and redevelopment of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho intends to use the funds from the offering to continue permitting, early restoration and field operations, engineering and design at the Stibnite Gold Project and for general corporate purposes.
B. Riley Securities, Inc. and Cantor Fitzgerald Canada Corporation are acting as joint book-running managers for the Offering.
PPTA is currently trading in pre-market at $5.21, down $0.51 or 8.92 percent from previous close.