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Braze - AI Stock Analysis
Analysis generated May 29, 2025
Braze is a comprehensive customer engagement platform that offers solutions to personalize marketing and ensure seamless customer experience across various channels. The company provides tools and services that enable brands to collect, analyze, and act on customer data in real-time, which is pivotal in today’s digital marketing landscape. Braze’s innovative approach and its expanding service offerings make it a notable player in the marketing technology sector.
Fundamental Analysis
Revenue: For the last quarter, Braze reported a revenue of $160M, which marks an increase of 5.49% over the previous quarter and a 22.48% increase compared to the same quarter last year. These figures suggest that Braze is experiencing consistent growth in its financial performance.
Net Income: The net income for the last quarter was $17M. This signifies an impressive growth of 38.40% compared to the prior quarter and a 39.20% increase year over year. This robust profitability is a strong indicator of operational efficiency and successful cost management.
EBITDA: The EBITDA for the last quarter stood at $19M, showing an increase of 37.16% from the previous quarter and 34.03% year over year. This highlights Braze’s effective profit-generation ability before accounting for interest, taxes, depreciation, and amortization.
However, it’s worth noting that there has been insider selling of the company’s stock in the last few months. This can often be a bearish signal as it might indicate that insiders believe the stock may not perform as well in the future.
Technical Analysis
Stock Price: Today’s stock price is $36.07, which represents an increase of 14.36% over the past month, indicating a positive short-term trend. However, it is down by 3.35% compared to a year ago, which could raise concerns regarding long-term performance.
Trend Indicators: The Simple Moving Average (SMA10) is currently at 35.19, slightly up from the previous SMA10 of 35.13, suggesting an upward trend in price movement. The Relative Strength Index (RSI) stands at 39.5, which is in the neutral range, indicating neither overbought nor oversold conditions.
Overall, the trend appears bullish with short-term price improvements, but the year-over-year price decline calls for a cautious approach.
Alternative Data Analysis
Job Postings and Employee Sentiment: Braze has 133 open positions, an increase of 20% over the past few months. This suggests that the company is in growth mode, potentially expanding its operations and business activities. Employee sentiment is currently neutral, indicating stable internal perception.
Customer Acquisition and Engagement: Braze’s website traffic has seen an estimated 1M visitors, up by 27% over the past few months. This could signal a rise in customer interest and potential acquisition. On social media, Braze's Instagram followers have grown by 5% to 5,000, while their Twitter followers have decreased by 1% to 16,000. This mixed data needs to be monitored closely.
AI Score: Based on a comprehensive analysis of fundamental, technical, and alternative data, Braze has an AI score of 74, which is indicative of a buy signal.
Conclusion and Recommendation
Braze demonstrates strong financial performance with significant growth in revenue, net income, and EBITDA. The short-term technical indicators point to a bullish trend, but long-term price performance remains a slight concern. The increase in job postings and website traffic are positive signs of expansion, despite mixed social media engagement signals.
Taking into account all these factors, the overall outlook for Braze appears promising, with potential for continued growth. Investors should consider these positive trends while also staying mindful of the insider selling and long-term price performance. Consequently, a cautious buy recommendation is suggested for Braze.
Disclaimer: This AI stock analysis, 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.
