AI Stock Analysis: Is BZFD a Smart Buy right now?

August 5, 4:00 am

Buzzfeed, Inc. is a digital media company known for its viral content, news, and entertainment. Founded in 2006, Buzzfeed has grown into a significant player in the online media landscape. The company generates revenue through advertising, sponsored content, and native advertising. Despite its popularity, Buzzfeed has faced challenges in maintaining profitability and adapting to the rapidly changing digital content consumption habits.

Price & AI Score for BZFD.

Fundamental Analysis

Revenue for the last quarter was $44M. This is an increase of 9.09% compared to the quarter before it, which reflects a positive sign of growth. However, compared to the same quarter last year, there is a decrease of 33.67%, which is a significant decline and a cause for concern. These contrasting figures highlight the volatility in Buzzfeed's revenue streams.

Net income for the last quarter was $36M. This reflects a decrease of 224.22% compared to the quarter before it, indicating a severe need for concern. Despite this, compared to the same quarter last year, there is an increase of 0.76%, suggesting some minor positive year-over-year growth.

EBITDA for the last quarter was $25M. This represents a decrease of 89.69% compared to the quarter before it, revealing substantial operational challenges. Compared to the same quarter last year, there is a decrease of 12.05%, which continues to show a concerning trend.

Technical Analysis

Today's stock price is $2.41. This represents a decrease of 12.36% compared to a month ago, which may be concerning in the short term. Over the longer term, compared to a year ago, there is a decrease of 6.59%, raising alarms for a long-term downward trend. This overall bearish trend is further emphasized by the current Simple Moving Average (SMA10) of 2.62, which is lower than the previous SMA10 of 2.66.

The Relative Strength Index (RSI) is 0, indicating a potential oversold condition, suggesting that the stock might be undervalued and could see a bullish reversal. However, the overall trend remains bearish, making this a critical time for potential investors to watch the stock closely.

Alternative Data Analysis

Buzzfeed has, according to data from the most popular job boards, 3 open positions. This number is up by 50% in the last couple of months, indicating a potential for growth and expansion, which is a healthy sign for the company. Conversely, the business outlook is down by 7% in the last couple of months, an even more concerning trend.

Customer acquisition metrics are worrisome, with an estimated 89M visitors to their webpage, down by 22% in the last couple of months. Additionally, Buzzfeed has 920 daily downloads of their mobile apps, down by 27%, indicating a potential loss in customers.

Regarding customer engagement, Buzzfeed has 5.8M followers on their Instagram page, down by 1%, and 6M followers on their Twitter page, down by 0%. This suggests a general loss of interest from their audience built over years.

Furthermore, AltIndex’s AI score rates Buzzfeed at 13, a strong sell signal, combining fundamental, technical, and alternative data.

Conclusion and Recommendation

Buzzfeed's overall position seems fraught with challenges. Both fundamental and technical analyses reveal concerning trends, with decreasing revenues and net income showing significant volatility. Meanwhile, the technical indicators suggest a bearish trend with the SMA10 and RSI both highlighting potential further downward movement.

Alternative data paints a gloomy picture as well, with declining visitor traffic, app downloads, and social media engagement. Although the increase in open job positions indicates potential growth, the overall sentiment remains negative.

Given these insights, it is recommended to adopt a cautious stance towards Buzzfeed's stock. The strong sell signal from AltIndex’s AI score aligns with the data analyzed, suggesting it may be wise to avoid or sell Buzzfeed stock for now, pending significant improvements in their operational and financial performance.

Disclaimer: This article, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current. Visit BZFD AI Stock Analysis for a more up-to-date analysis.

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