Shares of Riskified Ltd. (RSKD) plunged 5.04% in pre-market trading on Wednesday, following a significant downgrade by JPMorgan. The financial services giant cut its rating on the fraud management platform provider from Neutral to Underweight, sparking a sell-off among investors.
JPMorgan analyst Reginald Smith issued the downgrade, citing concerns about Riskified's revenue and volume growth. While no specific price target was mentioned in the downgrade, the move signals a bearish outlook on the company's near-term prospects. This change in sentiment from a major financial institution has evidently shaken investor confidence, leading to the sharp decline in Riskified's stock price.
Despite the negative turn from JPMorgan, it's worth noting that the overall analyst consensus on Riskified remains mixed. According to FactSet, the company currently has an average rating of "hold" with a mean price target of $5.79. As the market digests this new information, investors will be closely watching for any further analyst revisions or company updates that might impact Riskified's stock performance in the coming days.
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