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Yext - AI Stock Analysis

Analysis generated October 17, 2024

Yext, Inc. is a technology company that offers digital knowledge management software. Their primary product helps businesses manage their public facts across various platforms, including search engines, directories, and social media networks. The company has been a prominent player in providing solutions that ensure business information is consistent, accurate, and readily available, thus driving better customer engagements and business operations.

Fundamental Analysis

Yext reported a revenue of $98 million for the last quarter, an increase of 1.98% compared to the previous quarter. This slight growth is a positive sign in a short-term perspective. However, compared to the same quarter last year, revenue decreased by 4.59%, indicating possible underlying challenges.

Net income for the last quarter was $4.1 million, which is a decrease of 6.29% compared to the previous quarter and a significant decrease of 18.04% from the same quarter last year. These figures reflect growing concern over the company's profitability trends.

The EBITDA for the last quarter was $2.6 million, representing a dramatic decrease of 625.21% from the previous quarter and a 163.19% drop compared to the same quarter last year. This steep decline raises red flags about Yext's operational efficiency and cost management strategies.

Technical Analysis

Yext's stock price today is $7.11, an increase of 8.88% compared to a month ago, reflecting a positive short-term trend. Compared to a year ago, the price has increased by 17.33%, suggesting a long-term upward trend.

The trend is bullish, supported by the current SMA10 of $6.90, which is higher than the previous SMA10 of $6.84. This indicates potential continued upward price movement. However, the RSI of 44.4 signals a neutral market condition, suggesting there’s neither heavy buying nor selling pressure currently dominating the stock.

Alternative Data Analysis

Regarding job postings and employee sentiment, Yext has 13 open positions, an 8% increase in the last couple of months, suggesting potential growth and expansion. Contrarily, the business outlook metric is down by 20%, indicating growing concern about future prospects.

With 510,000 visitors to their webpage and 5,700 followers on Instagram, both metrics have shown no significant increase or decrease in the past few months, indicating stagnation in customer engagement. Additionally, Yext's Twitter followers tally at 23,000, with no increase in recent months, which could indicate waning interest in the company from the public.

AltIndex's AI score, which evaluates Yext’s stock based on fundamental, technical, and alternative data, rates the company at 38, signaling a sell recommendation.

Conclusion

Overall, while Yext exhibits some positive short-term indicators, such as an increase in job postings and a rising stock price, the fundamental analysis reveals concerns about declining revenue and net income compared to last year, as well as an alarming drop in EBITDA. This raises questions about the company’s operational efficiency and overall profitability.

The technical analysis supports a bullish trend in the stock price over both the short and long term. However, the neutral RSI indicates that this movement may not continue with strong momentum. The alternative data shows mixed signals, with intent to expand not strongly reflected in customer engagement or business outlook metrics, creating a gray area.

Based on the composite analysis of fundamental, technical, and alternative data, the recommendation leans towards caution. Yext’s AI score of 38 indicates a sell signal, suggesting that despite some upward trends in stock price, the underlying data forecast potential challenges ahead. Investors should closely monitor the company's earnings reports and market changes before making decisions.

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.