ZI stock price took a nosedive after the company reported its results for the latest quarter. The price plummeted to $18.67 from $25.00, a drop of more than 26% in one day.
ZoomInfo stock has been a dismal performer over the years, wiping out most of the wealth of the investors. It has negative all-time returns of -53.33%, and year to date. It has posted a loss of 39.13%. The company faces challenges such as slow growth, increasing competition, and longer sales cycles, which may weigh on its future prospects.
ZI Second Quarter 2023 Financial Results
The company achieved solid revenue growth of 16% year-over-year to $308.6 Million, driven by strong demand for its go-to-market platform. The company also delivered high profitability, with an operating income of $59.6 Million and an adjusted operating income of $125.6 Million, resulting in a GAAP operating income margin of 19% and an adjusted operating income margin of 41%.
The company generated healthy cash flow from operations of $116.7 Million and free cash flow utilized of $121.5 Million, reflecting its efficient capital allocation and cash conversion cycle.
GAAP revenue grew by 16% year-over-year to $308.6 Million. The company also improved its profitability, with a GAAP operating margin of 19% and an adjusted operating income margin of 41%.
The company generated robust cash flow from operations of $116.7 Million and used free cash flow of $121.5 Million. In addition, the company announced a $500 Million share repurchase program, demonstrating its confidence in its long-term growth prospects and its commitment to returning the capital to shareholders.
ZI stock price has experienced a sharp decline, breaking below the 50-day and 200-day SMAs and trading under them. The stock has been in a downtrend for a long time.
RSI has fallen below the middle line and entered the oversold zone. The RSI value is 25.46 and the 14 SMA value is 51.04, above the RSI line, which indicates a loss of momentum.
MACD is decreasing, with the MACD line below the signal line at -0.6164, which suggests a loss of momentum.
The stock may face further selling pressure if it fails to recover above the SMA levels and the RSI and MACD remain bearish.
Support and Resistance Levels for ZoomInfo Technologies
Support levels: $15.00.
Resistance levels: $2500 and $30.00.
SUMMARY
ZoomInfo Technologies stock is in a bearish trend, as the company reported disappointing quarterly results and weak guidance. The stock has lost more than half of its value since its IPO in 2020 and has shown no signs of reversal. The technical indicators are also negative, suggesting that the stock may continue to decline. Investors may want to avoid this stock until it shows some improvement in its fundamentals and technicals. Investors and traders should wait for a clear entry signal and avoid FOMO to prevent losses.
Disclaimer
The information provided in this article is for educational purposes only and does not constitute investment advice. Technical analysis is based on historical patterns and trends and does not guarantee future results. Trading involves risks, and you should only invest what you can afford to lose.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/08/03/zi-stock-price-prediction-whats-secret-behind-zoominfo-fall/