Last Updated: 14 Nov 2024
Executive Summary
Nextdoor Holdings Inc. (KIND), a social networking platform for neighborhoods, has a market capitalization of $951.5 million. While the company has seen revenue growth of 17% year-over-year, it continues to face profitability challenges, with a negative EBITDA of $110.86 million and a loss per share of $0.33. Despite a recent 2.783 analyst target price, the stock's current price of $2.45 suggests that it may be undervalued.
Company Overview
Nextdoor is a private social network for neighborhoods, connecting neighbors with each other and with local businesses. The platform allows users to share information, ask questions, and organize events. Nextdoor has over 275,000 neighborhoods in the US and is expanding internationally.
Fundamental Analysis
Revenue: Nextdoor's revenue for the trailing twelve months (TTM) is $237.6 million, with a quarterly revenue growth of 17% year-over-year.
Profitability: The company is currently unprofitable, with a negative EBITDA margin of -53.2% and a diluted EPS of -$0.33.
Valuation: Nextdoor trades at a price-to-sales ratio of 4.005, a price-to-book ratio of 2.087, and an EV-to-revenue ratio of 2.397.
Technical Analysis
Support and Resistance: The stock has been trading within a range of $1.32 to $2.995 over the past 52 weeks.
Moving Averages: The 50-day moving average is currently at $2.449, while the 200-day moving average is at $2.35.
Relative Strength Index (RSI): The RSI is currently at 48.5, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, Nextdoor's stock price is likely to be influenced by the company's upcoming earnings report and any news regarding its profitability outlook. If the company can demonstrate progress towards profitability, the stock price could see a boost.
Long Term Outlook
Nextdoor has a strong market position as the leading social networking platform for neighborhoods. The company has the potential to grow its revenue and user base significantly in the long term. However, the company's profitability challenges need to be addressed in order to unlock its full potential.
Analyst Recommendations
Analysts have a hold rating on Nextdoor's stock, with a target price of $2.783. This suggests that analysts believe the stock is fairly valued at current levels.
