Stocks To Watch: Avaya Holdings Corp. [NYSE: AVYA] was a big mover in Friday’s session. The stock closed the day with gains of 30.73%. This followed news of a partnership with RingCentral. Under the deal, Avaya will launch a cloud office service on RingCentral in Q1 of 2020. On top of that, RingCentral will pump in $500 million into Avaya. The investment will be split into redeemable preferred equity, and future commissions for specified licensing rights. The deal will give Avaya a 3% stake in RingCentral. Besides this partnership news, Avaya also announced that it would buyback $500 million of its common stock and also pay $250 million worth of debts. This news excited traders especially in the options market causing the stock to spike.
From the charts, Friday’s news saw AVYA open the day with a gap up, which closed the gap down that happened in early September. This move was also characterized by high volume with 28.26 million shares changing hand on Friday. This move could be an indicator that bulls are back in control. In the day, the key level to watch will be the $14 range, which has been a key resistance area in the last two months. In today’s session, the main factor that could see AVYA break this resistance is news of its deal with Microsoft.
Yesterday, the Business Wire ran a story to the effect that Avaya and Microsoft had announced a new IX-CC offering at the GITEX Technology week 2019. Under the deal, the Avaya IX-CC, a customer center as a service platform, will run on Microsoft’s Azure. The company will first introduce the service in the UAE before pushing it to the global market. Avaya is already gaining momentum pre-market, and is up by 2.12% at the time of writing.
Avaya is a digital communications solutions and services provider. The company has two segments, one focusing on products and solutions, while the other is focused on solutions. It has its headquarters in Santa Clara, California.