TeamViewer stock price technicals point to a deeper dive ahead

TeamViewer (ETR: TMV) stock price continued its strong meltdown on Tuesday after a big shareholder sold shares. The shares crashed to a low of €13.4, the lowest point since February 2023. They have crashed by over 24% from the highest point this year.

Permira sells part of the stake

TeamViewer is a well-known European technology company that provides solutions to companies from around the world. Its key products are Remote, Tensor, and Frontline. 

Remote enables companies to connect to any device in the organisation while Tensor makes it possible for IT managers to scale, manage, and offer support services. Frontline provides augmented reality solutions to industries.

TeamViewer share price crashed by over 10% after Permira, a big shareholder, sold part of the stock. Before the sale, the private equity company held a 21% stake in the company. In most cases, investors tend to sell stocks when a big shareholder sells.

TeamViewer, which is a big sponsor of Manchester United and Mercedes Formula 1 team, has been under pressure to boost its growth and profitability. As part of this approach, the company has scaled down its multi-million dollar partnership with Man U.

The most recent results showed that its revenue grew by 10% as its adjusted EBITDA margin came in at 44%. Its revenue came in at €158.1 million while its EBITDA rose by 19% to €70.3 million. It expects that its revenue will be between €620 million and €645 million, representing a 10% and 14% YoY growth.

The biggest challenge for TeamViewer is that companies are no longer investing in IT as they did a few years ago. In a recent report, Gartner found that IT spending will be $4.7 trillion this year, a 4.3% increase from the previous year. 

The company also faces strong competition from the likes of Microsoft, Cisco, Zoom, and GoTo. 

TeamViewer stock price forecast

TMV chart by TradingView

The daily chart shows that the TMV share price has been in a strong bearish trend in the past few months. The shares have moved below the 38.2% Fibonacci Retracement point at €13.95.

Worse, the stock is about to form a death cross, which happens when the 50-day and 200-day moving averages make a crossover. It also formed a double-top pattern at €17.07 whose neckline was at €13.38. 

Therefore, the outlook for TeamViewer share price is bearish, with the next point to watch being the 50% retracement point at €12.73.

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