Asia tech stocks slide tracking Wall St losses amid AI doubts, govt. uncertainty
Investing.com - Evercore ISI downgraded Ibotta Inc (NYSE:IBTA) from Outperform to In Line and slashed its price target to $38.00 from $65.00 following disappointing second-quarter results. According to InvestingPro data, the stock has fallen over 54% in the past six months, though the company maintains impressive gross profit margins of nearly 85%.
The digital rewards platform reported revenue of $86 million, representing a 2% year-over-year decline and missing Street expectations by 5%. EBITDA came in at $17.9 million, 12% below analyst consensus.
Management attributed the underperformance to disruptions from its sales reorganization and slower scaling or pausing of new performance marketing clients.
The company issued third-quarter revenue guidance of $79-$84 million, which represents a 17% year-over-year decline at the midpoint. EBITDA guidance was set at $9.5-$13.5 million, implying a margin of approximately 14% at the midpoint.
Both guidance figures fell significantly below Street expectations, prompting Evercore ISI to lower its estimates and reduce its price target by nearly 42%.
In other recent news, Ibotta Inc. reported its second-quarter 2025 earnings, which showed a slight miss on earnings per share (EPS) expectations, with an actual EPS of $0.49 compared to the forecasted $0.52. The company also reported revenue of $86 million, a 2% decline year-over-year, which fell short of Street expectations by 5%. Evercore ISI downgraded Ibotta from Outperform to In Line, citing sales reorganization issues and reducing the price target from $65.00 to $38.00. Additionally, Citizens JMP downgraded the company from Market Outperform to Market Perform due to concerns over product delays and limited revenue visibility. The firm highlighted that Ibotta’s product development is taking longer than expected and noted ongoing restructuring within the sales team. Despite these challenges, the market reacted positively to strategic initiatives and future guidance, reflecting potential growth. These developments offer a snapshot of Ibotta’s current financial and operational landscape.
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