• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Zalando share price at risk as death cross and head & shoulders emerge

by July 9, 2025
by July 9, 2025

Zalando share price has crashed in the past few months and has formed a head-and-shoulders pattern, pointing to more downside. ZAL stock was trading at €28.30, down by 30% from its highest point this year, meaning it is in a bear market.

Zalando share price technical analysis

The daily chart shows that the Zalando stock price has been in a downtrend this year, a drop that has made it one of the top laggards in the DAX Index. It has formed a death cross as the 50-day and 200-day Exponential Moving Averages (EMA) have crossed each other. 

Zalando share price has also formed a head-and-shoulders pattern, a popular bearish reversal sign. The head is at €39, while the two shoulders are at €35.8, and the neckline is at €28. 

This pattern often leads to a strong bearish breakout. It has also moved to the 50% Fibonacci Retracement level at €27.9. Therefore, the stock will likely have a strong bearish breakdown in the coming weeks. If this happens, the most likely scenario is where it tumbles to the psychological point at €20. 

The bearish trend will become invalid if the stock rises above the 23.6% Fibonacci Retracement level at €34.30. 

Zalando stock price chart | Source: TradingView

Growth concerns remain

The Zalando share price has plunged, even after the company published strong financial results. Its gross merchandise value (GMV rose by 6.5% in the first quarter to €3.5 billion, translating to a revenue growth 7.9%. It had a quarterly revenue of over €2.4 billion. 

The results also showed that most of its revenue came from the business-to-consumer segment, which made over €2.18 billion in revenue. Its business-to-business made €240 million, a €25 million YoY increase. 

Most importantly, Zalano has started focusing on profitability, with its quarterly EBIT and net income growing to €46.7 million and €7.7 million, respectively. 

Other non-financial metrics also improved last quarter. The number of active customers in the trailing twelve months jumped to 52.4 million, up from 49.2 million a year earlier. 

This growth increased the number of orders, which rose to 58.5 million from 55.2 million the previous year.]

The management has been pivoting its business to the more upmarket segment as it seeks to ameliorate competition from companies like Shein and Temu. It achieves this by adding luxury brands like Marc Jacobs to its platform. 

At the same time, management has also adopted acquisitions to drive growth. It acquired ABOUT YOU, a move that it expects will generate over €100 million in annual synergies. ABOUT YOU’s business has over 12 million customers and sells over 4,000 brands. 

Therefore, these positive catalysts are bullish for the stock, which explains why Jefferies analysts initiated it with a buy rating. The analysts cited its healthy growth and margin expansion. 

Therefore, the most likely scenario is where the Zalando stock price continues falling in the near term because of its technicals and then rebound later this year. 

The post Zalando share price at risk as death cross and head & shoulders emerge appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Russian wheat exports poised to rise on bumper harvest, price edge
next post
Asian markets open: Nikkei down 0.15%; Sensex poised for subdued start

Related Posts

Top Nifty 50 Index gainers and losers of...

August 25, 2025

Here’s why the Orsted share price is crashing...

August 25, 2025

Foxconn recalls more Chinese engineers from India in...

August 24, 2025

Bank of America identifies 5 stocks with strong...

August 24, 2025

Cracker Barrel stock: why going back to the...

August 24, 2025

Top 3 stocks to buy with strong cash...

August 24, 2025

Here’s the only FTSE 100 stock in Warren...

August 24, 2025

US government’s investment in Intel may not be...

August 24, 2025

Top 4 Nasdaq 100 Index and QQQ ETF...

August 24, 2025

Hang Seng Index: bubble warnings ahead of Alibaba,...

August 24, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • How to Invest in Internet of Things (IoT) Companies

    August 25, 2025
  • CrossFit Reminds Us Who’s Really Running Your Life

    August 25, 2025
  • Why Americans Should Fear Washington in Intel’s Boardroom

    August 25, 2025
  • Trump Plays for All the Federal Reserve Marbles

    August 25, 2025
  • Top Nifty 50 Index gainers and losers of 2025 revealed

    August 25, 2025
  • Here’s why the Orsted share price is crashing today

    August 25, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 7

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025

Categories

  • Economy (2,309)
  • Editor's Pick (218)
  • Investing (185)
  • Stock (1,563)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Reliance’s $10B clean energy push: doubling down...

July 21, 2025

Amazon CEO says AI will shrink workforce...

June 18, 2025

Big Food’s big challenge of keeping up...

March 2, 2025