Craig-Hallum downgrades Wag! Group to Hold following ‘shockingly’ poor results

As previously reported, Craig-Hallum downgraded Wag! Group (PET) to Hold from Buy with a price target of 50c, down from $3. The firm says Wag! delivered “shockingly” poor Q3 results, with wide misses on both revenue and adjusted EBITDA, while also guiding Q4 well below consensus. Management attributed poor results to inefficiencies in marketing efforts driven by changes in the Google (GOOGL) algorithm, most notably felt in the Wellness segment which was down 52% year-over-year.