The Zoom share price is down 16.12% after the company said it saw slowing growth as workers migrated back to physical work spaces and away from online collaboration platforms.
Zoom’s revenues had grown 191% in the first quarter of 2020 but saw a slump to 54% growth in the second quarter. The company projects growth to slow even further in Q3 2021, as rapid deployment of vaccinations allows people to return to their traditional ways of working.
Zoom had reported a profit of $1.36 per share, which trumped estimates of $1.16 per share. However, investors have chosen to react to the forward guidance and the reality that the company’s pandemic boom may be over.
Zoom Share Price Outlook
The double top on the daily chart set the pace for the slide in the Zoom share price. 273.68 is expected to be the completion point of the measured move. This move needs the resistance at 302.38 to resist any return move, allowing for rally-selling at that level to take the price towards completion. 250.00 and 229.28 (11 August 2020) are additional downside targets.
On the other hand, bulls would be looking for a recovery bounce from the 273.68 support, targeting 302.38 initially. 325.86 and 348.86 are additional targets to the north if the price recovery holds. Otherwise, these resistance barriers may just be opportunity points to sell on rallies.