Shares of Zoom Video (ZM) - Get Report and RingCentral (RNG) - Get Report each fell 3% Tuesday after a Rosenblatt Securities analyst suggested the relationship between the two companies "could be fracturing," according to a report.
Video communication platform Zoom and cloud service provider RingCentral announced a multi-year extension of their partnership in May. But Bloomberg quoted a Rosenblatt analyst report saying RingCentral may speed up plans to launch its own video product.
"RingCentral is concerned that Zoom's recent sales efforts have targeted its existing customers," Bloomberg wrote, citing a note to clients written by Rosenblatt analyst Ryan Koontz.
Rosenblatt suspects RingCentral is developing its own video meeting product that could be announced as early as the coming weeks, Bloomberg reported.
Zoom Video shares were down 3.5% to $63.49, while RingCentral shares were down 3% to $155.68.
The companies couldn't be immediately reached for comment.