Market forces rained on the parade of Viant Technology Inc. (NASDAQ:DSP) shareholders today, when the analysts downgraded their forecasts for next year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
Following the downgrade, the consensus from five analysts covering Viant Technology is for revenues of US$217m in 2023, implying a discernible 3.9% decline in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 24% to US$0.43. However, before this estimates update, the consensus had been expecting revenues of US$259m and US$0.24 per share in losses. So there’s been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.
See our latest analysis for Viant Technology
The consensus price target fell 31% to US$6.42, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Viant Technology at US$8.00 per share, while the most bearish prices it at US$6.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Viant Technology shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 3.1% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 16% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 13% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining – Viant Technology is expected to lag the wider industry.
The most important thing to note from this downgrade is that the consensus increased its forecast losses next year, suggesting all may not be well at Viant Technology. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to next year’s expectations and a falling price target, we wouldn’t be surprised if investors were becoming wary of Viant Technology.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Viant Technology going out to 2024, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
CEO Warren Buffett has attributed much of Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) incredible success through the years to an investment approach that revolves around being fearful when others are greedy — and greedy when others are fearful. Berkshire's recent third-quarter results show that the investment conglomerate was a net purchaser of stocks in the period, suggesting that the Oracle of Omaha sees opportunity in the market despite current risk factors and volatility. Macroeconomic pressures, rising costs, and slowing e-commerce growth had already been pressuring Amazon (NASDAQ: AMZN) stock this year, and the company's third-quarter results highlighted additional risk factors that dampened investor confidence.
The latest message from former FTX chief executive Sam Bankman-Fried left onlookers puzzled and alarmed after the swift decline into bankruptcy for the cryptocurrency exchange he founded.
The ageless Dow Jones Industrial Average, broad-based S&P 500, and tech-dependent Nasdaq Composite have all plunged into bear market territory. Historically, stock market crashes, corrections, and bear markets have represented the ideal time for long-term investors to put their money to work. Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), the parent company of internet search engine Google and streaming platform YouTube, is a new addition to my portfolio in 2022 (I specifically bought GOOGL).
As the fallout from the collapse of Sam Bankman-Fried's blockchain empire FTX continues, investors are wary about the battered cryptocurrency market. The crypto industry has already seen the closure of major players, along with the Bitcoin (CRYPTO: BTC) bubble bursting. "Rich Dad, Poor Dad" author Robert Kiyosaki has dropped words of caution about Bitcoin's performance in the present market scenario. In a recent tweet, Kiyosaki says he is not looking at flipping Bitcoin by market cap as he is a
Berkshire Hathaway's SEC filings and quarterly report spilled the beans on two big buys in the third quarter.
Our call of the day comes from Morgan Stanley where a team led by top U.S. strategist Mike Wilson sees the S&P 500 finishing next year almost on par with where it is now, at 3,900.
Even if the latest stock market surge is only temporary, buying these stocks should be a smart move.
AMD's new chips could be a big winner in 2023.
One thing we could say about the analysts on Veru Inc. ( NASDAQ:VERU ) – they aren't optimistic, having just made a…
(Bloomberg) — Investors are betting Alibaba Group Holding Ltd. may finally see its fortunes turn around after a rough 2022 plagued by a 40% slump in the shares and rare sell calls from Wall Street analysts.Most Read from BloombergChina Plans Property Rescue in Latest Surprise Policy ShiftFTX Latest: Binance CEO Plans Recovery Fund, Laments Bad ActorsBiden Meets Xi as Asia Allies Look to Lower TemperatureFall of the World’s Hottest Stock Cost Sea Founders $32 BillionFTX’s Freefall Into Bankruptc
Innovative Industrial Properties (NYSE: IIPR) (IIP) is a real estate investment trust (REIT) that focuses on the regulated cannabis industry in the U.S. It currently owns 111 properties in 19 states. The company offers a dividend yield of nearly 7%. IIP has increased its dividend by 12x since 2017.
Calpers, the California Public Employees' Retirement System, disclosed the third-quarter moves in a filing with the SEC.
The token is the first big victim of the abrupt implosion of Sam Bankman-Fried's FTX cryptocurrency exchange.
On one hand, investing in 2022 has been an adventure. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have all declined by more than 20%, which puts all three major U.S. stock indexes firmly in a bear market. On the other hand, bear markets represent a phenomenal opportunity for patient investors to put their money to work.
Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet's Quant Ratings, we zero in on three names. While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names. Taiwan Semiconductor Manufacturing Co. recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
It includes Facebook parent Meta Platforms, Apple (NASDAQ: AAPL), Amazon, Netflix, and Google parent Alphabet. Apple is known for putting its own spin on existing technological devices. Given the state of the economy — including decades-high inflation — it's not crazy to think that Apple's sales would drop substantially, especially considering people can get by just fine without most of its products.
Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) ("Energy Fuels" or the "Company"), a leading U.S. producer of uranium and rare earth elements ("REE"), is pleased to announce that it has entered into a definitive agreement to sell three wholly-owned subsidiaries that together hold Energy Fuels' Alta Mesa ISR Project ("Alta Mesa") to enCore Energy ("enCore") for total consideration of $120 million (the "Transaction"). The Transaction is expected to close by the end of 2022 or early 2023.
These growth stocks have hardly scratched the surface of their large and growing market opportunities.
Oil companies have paid out a gusher of dividends this year. Many companies instituted fixed-plus-variable dividend strategies to return more of their free cash flow to shareholders over the past year. With oil prices topping $100 a barrel earlier this year, it boosted their free cash flow, allowing them to pay increasingly larger dividends.
Chinese stocks have outperformed after progress was made with two key market headwinds. It has little to do with the Singles Day shopping event.