Shares of the popular video conferencing app, Zoom, are down by over 7% in today’s trading as its CEO addressed security issues. As of this writing, Zoom share price is trading at 119.20, down by 7.02% for the day.
The coronavirus pandemic has gripped the whole world and caused lockdowns in most countries. Zoom then saw its popularity surge as people turned to it to continue their jobs or simply to connect with friends and family. This consequently led to Zoom share price to score a whopping 39.16% profit in March as other stocks on the Nasdaq bled out.
However, the popularity of the video conferencing platform quickly attracted attention to holes in its user privacy and security. There have been multiple reports of Zoom meetings being hacked. There is also an ongoing class lawsuit against the company on accusations that it shared some user data with Facebook without duly notifying its users.
With all these, Zoom CEO Eric Yuan admitted to the company’s shortcomings, saying that they “moved too fast” with the coronavirus pandemic. He also tried to affirm consumers and investors that they are taking steps to quickly address the issues.
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Zoom Share Price Outlook
On the daily time frame, it can be seen that Zoom share price is trading below trend line support from connecting the lows of January 27, March 17, and April 2. This trend line break suggests that the uptrend on the stock may no longer be intact and that it could soon trade lower. Near-term support is at 103.30 where Zoom share price previously found support (on March 9 to March 17) and resistance (in June to July 2019). If support at this price does not hold, we could see the stock trade even lower to 87.25 where it could test the 100 SMA and 200 SMA.
Alternatively, if there are enough buyers to push Zoom share price above the rising trend line to 130.00, we could see the stock resume its rally. It could trade up to 130.25 where it topped on March 5.
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