60%+ returns in 2025: Here’s how AI-powered stock investing has changed the game
Investing.com - JPMorgan upgraded Riskified Ltd. (NYSE:RSKD) from Underweight to Neutral on Friday, setting a price target of $6.00. According to InvestingPro data, this target aligns closely with the stock’s Fair Value assessment, suggesting the shares are currently slightly undervalued at their current price of $4.99.
The upgrade follows Riskified ’s third-quarter results, which showed accelerated volume, revenue, and gross profit growth compared to previous quarters. The company’s performance was driven by continued upsell success and improvements to its models. Revenue reached $338.84 million for the last twelve months, with a healthy gross profit margin of 50.26%.
Cost discipline contributed to what JPMorgan described as a "healthy" adjusted EBITDA beat for the quarter. Management raised its full-year 2025 guidance, suggesting further acceleration in gross profit growth. InvestingPro data shows Riskified holds more cash than debt on its balance sheet, with a strong current ratio of 6.04, supporting its financial flexibility.
The new guidance implies approximately 15% adjusted EBITDA margins in the fourth quarter, which JPMorgan viewed as encouraging. The firm specifically noted model improvements that contributed to third-quarter gross profit growth, which it believes should be sustainable moving forward.
Despite the upgrade, JPMorgan indicated it remains "on the sidelines for now," citing uncertain macroeconomic trends, though it acknowledged potential for shares to increase through 2026 based on solid execution and margin expansion.
In other recent news, Riskified Ltd reported its financial results for the third quarter of 2025, showing a notable miss in earnings per share (EPS). The company posted an EPS of -$0.04, significantly lower than the expected $0.03, marking a negative surprise of 233.33%. However, Riskified’s revenue slightly exceeded expectations, coming in at $81.9 million against a forecast of $80.34 million. Despite the earnings miss, the revenue performance indicates some positive aspects in the company’s financial situation. These developments are part of Riskified’s recent activities that investors are closely monitoring. While the EPS miss was significant, the revenue beat might provide some reassurance to stakeholders. Analysts and investors will likely continue to watch Riskified’s financial performance closely in the coming quarters.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.