In a report released today, Brian Nowak from Morgan Stanley downgraded Nextdoor Holdings (KIND – Research Report) to a Sell, with a price target of $1.10.
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Brian Nowak has given his Sell rating due to a combination of factors impacting Nextdoor Holdings. The company’s revenue growth has slowed significantly, partly due to large advertisers reducing their spending on the platform amid broader economic uncertainties. Additionally, Nextdoor is in the midst of a platform overhaul with its “NEXT” initiative, which introduces new features but also brings potential short-term disruptions to user engagement and advertising revenue.
Moreover, the macroeconomic environment poses further challenges, as advertisers are increasingly prioritizing platforms that offer superior performance metrics and return on ad spend. Nextdoor currently lags behind its competitors in these areas, which could hinder its ability to attract and retain advertising clients. Consequently, the combination of platform-level uncertainties and macroeconomic pressures has led to a cautious outlook on Nextdoor’s financial performance, prompting the Sell rating.