S hares of Riskified (NYSE: RSKD) are down 45% over the past month and a whopping 72% from their all-time high, despite being on the market for just four months. This price drop was partially due to the IPO hype wearing off as other exciting IPOs came to the market, but the chief source of this pressure was a poor third-quarter performance.
Full Answer
What happened to Riskified stock?
Feb 23, 2022 · Shares of Riskified ( RSKD -6.83%), an e-commerce risk management platform, tumbled today after the company reported its fourth-quarter and full-year 2021 results late yesterday. While the company ...
Can Riskified stock continue to grow sales in 2022?
Nov 16, 2021 · Riskified (RSKD) Stock: Why The Price Dropped Today. The stock price of Riskified Ltd (NYSE: RSKD) fell by over 20% during intraday trading today. This is why it happened. The stock price of Riskified Ltd (NYSE: RSKD) – a fraud management platform enabling frictionless eCommerce – fell by over 20% during intraday trading today. Investors are responding …
Should investors be disappointed with Riskified's slowing sales?
Sep 09, 2021 · Shares of Riskified (RSKD-5.82%) fell today after the fraud management platform company reported its second-quarter results. The company's revenue and earnings in the quarter outpaced analysts ...
Is Riskified a good dividend stock to buy?
Nov 16, 2021 · Shares of Riskified (NYSE: RSKD), a technology company serving e-commerce businesses, fell sharply on Tuesday, after the company reported third-quarter financial results. The company beat guidance ...
Is Riskified stock a good buy?
Is Riskified down?
If you have any questions please feel free to contact us at [email protected]. March 14, 2022 1:06PM UTCResolved - The issue has been resolved since 13:06 UTC. We are currently monitoring and investigating the root cause.
Why is RSKD down?
Is RSKD a buy?
The 7 analysts offering 12-month price forecasts for Riskified Ltd have a median target of 10.00, with a high estimate of 12.00 and a low estimate of 6.50. The median estimate represents a +90.48% increase from the last price of 5.25.
Who are Riskified competitors?
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What happened
Shares of Riskified ( RSKD -2.65% ) fell today after the fraud management platform company reported its second-quarter results. The company's revenue and earnings in the quarter outpaced analysts' consensus estimates, but investors were disappointed that the company losses widened.
So what
Riskified's revenue grew 47% from the year-ago quarter to $55.7 million. That was enough to beat Wall Street's consensus estimate of $54.98 million for the quarter.
Now what
Riskified just became a publicly traded company a few weeks ago, so a big share price plunge following the company's first earnings report after its IPO isn't all that surprising. New publicly traded companies tend to have more volatile share prices.
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What happened
Shares of Riskified (NYSE: RSKD), a technology company serving e-commerce businesses, fell sharply on Tuesday, after the company reported third-quarter financial results. The company beat guidance and expectations and even raised its outlook for the rest of the year.
So what
Going into the third quarter, management had guided for revenue of up to $51.2 million, and that's about what analysts were expecting as well. However, the company bested this number with revenue of $52.5 million, up 26% year over year.
Now what
This could be the wrong takeaway when it comes to Riskified's gross margin. Management said it has recently entered new e-commerce categories and it's still collecting data points. And since it's still a small company, financial results can swing from quarter to quarter.
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What happened
Shares of Riskified (NYSE: RSKD) crashed down 17.2% in December, according to data provided by S&P Global Market Intelligence. And January hasn't started any better considering it's already down 13% year to date as of this writing. And the stock is now down a cringeworthy 81% from its all-time high just a few months ago.
So what
Let's talk about what happened on Dec. 10. That day, Goldman Sachs analyst Will Nance started covering Riskified stock and recommended investors sell it, according to The Fly. Nance foresees macroeconomic issues challenging revenue growth and worsening profit margins as Riskified expands its product offering.
Now what
The quiet gives us a chance to weight the merits of the bear arguments against Riskified. Both of Nance's macroeconomic concerns -- regulatory changes in Europe and supply-chain constraints -- were addressed in the conference call to discuss financial results for the third quarter of 2021.
The stock drop was caused by a significant potential risk to the company
Riskified ( RSKD 1.27% ) has had a rough ride since its initial public offering in late July. Shares of the company, which uses artificial intelligence (AI) to detect fraudulent orders for e-commerce companies, jumped 40% in their first month of trading. But after concerns arose in its third-quarter earnings, the shares sunk like a stone.
Why it fell
When e-commerce companies try to detect fraudulent orders in-house, it can be a slow process, and they can degrade their customers' experience by asking questions or even denying a potentially real order. This problem is expensive for e-commerce businesses and very time-consuming.
NYSE: RSKD
Riskified uses AI to monitor orders, alerting the seller of potential fraud within seconds, all without disrupting the customer experience. Riskified also provides a charge-back guarantee, through which it pays its customer for the lost goods if it misses a fraudulent order.
What to make of it
If the first reason holds true, and its system is simply taking time to become more accurate as it gathers more data about the market it just entered, that is less concerning. Lemonade ( LMND -0.13% ), another company that uses AI, is experiencing a similar problem as it sells insurance.
A value play or a value trap?
Riskified is trading at just 5 times sales, a rock-bottom multiple for AI companies. Comparatively, AI-reliant companies Upstart ( UPST 3.29% ) and Lemonade, trade at 21 and 23 times sales, respectively.
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What is the ticker symbol for Riskified?
Riskified trades on the New York Stock Exchange (NYSE) under the ticker symbol "RSKD."
What is the official website of Riskified?
The official website for Riskified is www.riskified.com.
What is the rating of Riskified?
Riskified has received a consensus rating of Buy. The company's average rating score is 2.78, and is based on 7 buy ratings, 2 hold ratings, and no sell ratings.
Does Riskified pay dividends?
Riskified does not currently pay a dividend.
Why I love Riskified
Since its IPO, Riskified has been an attractive company to me. It uses artificial intelligence (AI) to detect fraudulent transactions for e-commerce orders. Unfortunately, fraud can frequently look like real orders, while authentic orders can look suspicious.
My main concern
Q3 growth slightly slowed compared to Q2, but that was not the main concern. What really worried investors was that the gross margin dipped from 52% in Q3 2020 to 45% in Q3 2021. The drop was even greater sequentially: In Q2 2021, the company had gross margin of 59%.
How I am moving forward
I am a fan of Riskified, and management's reasons do make sense. However, I am not one to simply take a management team's word as truth. Consider that almost every company nowadays is tossing out the word "AI" in hopes of getting hype; it has become hard to decipher which companies use AI effectively and which are using it to gain attention.
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Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community.