Zoom Communications Inc. (NASDAQ:ZM) shares fell in Thursday premarket trading, after the video-conferencing giant posted mixed fourth-quarter results.

Adjusted earnings per share of $1.44 missed the $1.49 consensus estimate, while revenue of $1.247 billion edged past the $1.232 billion forecast, according to Benzinga Pro data.

Guidance Disappoints Wall Street

For the first quarter, Zoom guided for adjusted EPS of $1.40 to $1.42, lower than the $1.45 analyst estimate. Revenue guidance of $1.220 to $1.225 billion roughly aligned with the $1.222 billion consensus but offered little upside to excite bulls.

Product Catalyst: Virtual Agent 3.0

On Tuesday, Zoom unveiled Zoom Virtual Agent 3.0 (ZVA), designed for end-to-end customer resolution.

According to a Morning Consult report commissioned by Zoom, 43% of consumers say chatbots fail to resolve their issues.

Technical Analysis

Zoom Communications (ZM) is currently positioned below key moving averages, indicating a bearish trend. The stock is trading 11% below its 20-day SMA, 8.2% below its 50-day SMA, and just slightly below its 200-day SMA by 1.4%, suggesting that it is struggling to regain upward momentum.

The RSI is currently at 41.96, which is considered neutral territory. This level indicates that there isn’t strong buying or selling pressure at the moment, leaving room for potential price movements in either direction.

MACD is below its signal line, indicating bearish pressure on Zoom Communications.

This suggests that the momentum is currently weak, and traders should be cautious about potential further declines.

Key support is set at $80.00, while resistance is at $88.00. If the stock approaches the support level, it could signal a potential reversal or continuation of the downward trend, while a break above resistance may indicate a shift in momentum.

The golden cross in October, where the 50-day SMA crossed above the 200-day SMA, initially suggested a bullish outlook. However, the current positioning below key moving averages indicates that this bullish signal may not hold in the near term.

Over the past 12 months, Zoom Communications has gained 15.21%, reflecting a longer-term positive trend despite recent struggles. This performance highlights the stock’s ability to recover from previous lows, but the current technical setup suggests traders should remain vigilant.

Currently, Zoom is trading at 50.4% of its 52-week range, which places it in the middle of its yearly performance spectrum. This positioning suggests that while the stock has room to move, it also faces significant resistance above its current price.

The current technical setup indicates that a cautious approach may be warranted until clearer signals emerge.

Analyst Outlook

The stock carries a Buy Rating with an average price target of $91.07. Recent analyst moves include:

• Citizens: Market Perform (Feb. 24)
• Benchmark: Buy (Lowers Target to $110.00) (Feb. 24)
• Citigroup: Upgraded to Buy (Raises Target to $106.00) (Jan. 12)

ZM Price Action: Zoom Communications shares were down 5.42% at $80.80 during premarket trading on Thursday, according to Benzinga Pro data.

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