Gold prices buoyed by tariff fears; US duties on 1-kilo bars spur supply concerns
Investing.com - Canaccord Genuity downgraded Vivid Seats Inc. (NASDAQ:SEAT) from Buy to Hold on Wednesday, while significantly reducing its price target from $80.00 to $23.00 following disappointing second-quarter results. The stock has fallen over 76% in the past six months, with shares currently trading near their 52-week low of $19.58. According to InvestingPro analysis, the stock’s RSI indicates oversold conditions, suggesting potential stabilization ahead.
The ticket marketplace reported a decline of more than 30% year-over-year in marketplace GOV (gross order value) during Q2, worsening from the 20% decline observed in Q1. Despite maintaining a robust gross profit margin of 74%, this performance deterioration primarily reflected intensifying competitive pressures, with a key competitor accelerating its performance marketing spending. InvestingPro subscribers can access 12 additional key insights about Vivid Seats’ financial health and market position.
Broader consumer softness contributed several hundred basis points to the decline, with the industry growing at the start of Q2 but experiencing double-digit declines in June. Underwhelming playoff match-ups also negatively impacted the sports category, though to a lesser extent.
Despite July showing a return to year-over-year growth, Vivid Seats management expects competitive intensity to persist throughout the remainder of the year. The company continues to forecast the industry to be flat to slightly down for fiscal year 2025.
In response to these challenges, Vivid Seats announced it is shutting down its Vivid Picks offering and implementing a $25 million cost reduction initiative to preserve unit economics, with the savings expected to be realized by the end of the year.
In other recent news, Vivid Seats Inc. reported its second-quarter 2025 earnings, revealing a mixed performance. The company slightly exceeded expectations on earnings per share (EPS), posting -$0.03 compared to the forecasted -$0.0345. However, the revenue fell short of projections, coming in at $143.57 million against the anticipated $152.04 million. This discrepancy in revenue expectations has been a notable point of concern for investors. The financial results have drawn attention from analysts, though no specific upgrades or downgrades were mentioned in the recent reports. These developments are part of a series of recent updates concerning the company’s financial health. The focus remains on how Vivid Seats will navigate these challenges in the upcoming quarters.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.