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Zoom Raised $1.75B. Morgan Stanley Says the Street Is Too Bearish.


Dreamstime
Zoom Video Communications
shares are on the mend after the company priced an offering of 5.15 million shares at $340 each, generating proceeds of $1.75 billion before expenses. That is a little larger than the $1.5 billion originally targeted.
The offering will nearly double the company’s holdings in cash and marketable securities, which stood at $1.87 billion as of the end of the October quarter. Zoom (ticker: ZM) has no long-term debt.
Stifel analyst Tom Roderick says the deal adds financial flexibility, but that he thinks the total would have to be higher in order for the company to achieve substantial growth via acquisitions. “While [the company now has] a sizable war chest, the cash alone doesn’t necessarily put potential targets like ....

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Forget About Salesforce, Analyst Says. Buy These 5 Cloud Stocks Instead.


Salesforce (CRM), alas, might not be the best way to play it.
Piper Sandler analyst Brent Bracelin on Monday cut his rating on Salesforce to Neutral from Overweight, while keeping his $242 price target.
His view is that this “hungry hippo” needs time to digest two of its largest acquisitions: the $15.7 billion deal for Tableau in 2019 and the pending $27.7 billion takeover of
Slack Technologies
(WORK). He notes that the amount of stock issued in the two deals combined increases the number of shares outstanding by 194 million or about 24% of the total outstanding before the Tableau deal. He thinks that all the extra stock creates “a more challenging setup” for Salesforce in 2021. ....

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