Vivid Seats Faces Financial Strain Amid Declining Order Value and Rising Costs, Analyst Recommends Sell

Analyst Curtis Nagle from Bank of America Securities reiterated a Sell rating on Vivid Seats (SEAT – Research Report) and decreased the price target to $1.55 from $2.60.

Curtis Nagle has given his Sell rating due to a combination of factors impacting Vivid Seats’ financial performance. The company has experienced a decline in Gross Order Value (GOV) by 20% year-over-year, which is a significant concern as it indicates pressure on order volumes due to competitive intensity and weakening consumer trends. Additionally, Vivid Seats’ marketing costs have increased, leading to a missed EBITDA target and a decrease in EBITDA margin to 13.2%, which is below market expectations.
Management’s decision to withdraw their 2025 guidance further underscores the uncertainty facing the company, driven by macroeconomic challenges and ongoing competitive pressures. Despite some improvements in April, the overall industry outlook remains bleak, with management lowering their growth forecast. The persistent competitive environment is expected to continue affecting Vivid Seats’ market share and profitability, prompting a reduction in future financial estimates and a lowered price objective for the stock.

Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SEAT in relation to earlier this year.