Zoom shares drop about 6.5% after issuing cautious profit guidance despite beating estimates

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Zoom drops 6.4% today after outlook

Highlights

Zoom reported second quarter revenue of $1.28 billion, up 4.9% year over year and ahead of guidance.
Enterprise revenue increased 7.8% to the strongest growth in three years, with non-GAAP profit at $1.55 per share above consensus.
Shares of Zoom fell 6.4% intraday with rising volatility, trading in a $90.28 to $102.29 expected range and key support at $94.13.

Enterprise gains and guidance hike fail to offset persistent risk aversion

Zoom reported total revenue of $1.28 billion for the second quarter of fiscal year 2027, a 4.9% increase year over year, surpassing its prior guidance. Enterprise revenue rose 7.8%, the strongest in three years, and non-GAAP profit reached $1.55 per share, above consensus. The company raised full-year guidance for revenue and EPS, and announced product expansions, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees Zoom under heavy technical and sentiment pressure despite positive earnings. He notes the weak Q3 profit outlook has undermined confidence, while trading below the 20-day average compounds the bearish tone. He remains skeptical over the sustainability of recent gains, pointing to increased volatility and a disconnect between short-term weakness and longer-term support. Fundamental improvements and product expansion have failed to offset selling in the current climate. "Caution is vital here — a close below $94.13 may open up deeper downside as fragile sentiment persists," Kharitonov warns.

Viktoras Karapetjanc, expert at Traders Union, believes Zoom’s fundamentals are robust and the bullish structure remains intact. He highlights strong revenue growth and the upgraded full-year guidance as promising signs, even given some near-term uncertainty. Karapetjanc stresses that rising enterprise sales show deepening institutional adoption, with product expansions set to drive further growth. "The market offers multiple setups in the coming sessions — I expect further upside as momentum returns above $96.82," he asserts.

Parshwa Turakhiya, analyst, sees the stock at a volatile crossroads with mixed technical momentum. He notes intraday buyers dominate but warns of overbought risk and fading rallies. The current setup presents opportunities for nimble traders on both sides of the range. "Short-term action looks range-bound — a decisive move above or below the $94-$97 band could unlock quick setups for active participants," Turakhiya states.

Mixed momentum emerges as technical supports hold amid intraday volatility

Zoom is trading below the 20-day moving average at $102.49 but remains above the 50-day and 200-day moving averages at $94.13 and $89.78. This setup indicates short-term selling pressure, while the alignment between the 50-day and 200-day moving averages is broadly bullish for the medium- and long-term trend. The nearest support is at $94.13, with resistance emerging at the Ichimoku Kijun level of $96.82. Momentum signals show mixed conditions: the MACD and ADX indicate underlying buying interest, but the RSI is neutral, Stochastic RSI points oversold, CCI is neutral, and Bull/Bear Power suggests buyers dominate intraday, albeit with overbought risk. The stock is near session lows after an intraday spike and fading rally, reflecting heightened volatility and a divergence between short-term selling and positive medium-term momentum.

Earlier, analysts noted that Zoom shares faced continued selling pressure despite robust earnings results and an upgraded outlook. The current analysis adds a new dimension by highlighting a delicate technical setup, with a breakout above $96.82 or a breakdown below $94.13 poised to determine the next directional move.

Source of Data: ZM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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