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On Thursday, DA Davidson analyst Tom White adjusted the price target for Vivid Seats Inc. (NASDAQ: SEAT) to $3.50, a decrease from the previous $5.00, while maintaining a Buy rating on the company’s shares. The stock, currently trading at $2.74, has experienced a significant 28.75% decline over the past week. According to InvestingPro data, analyst targets for the stock range from $3.50 to $8.00, suggesting potential upside despite recent challenges. White’s reassessment follows Vivid Seats’ mixed fourth-quarter 2024 earnings report, which included government orders falling short of expectations, although revenue and EBITDA surpassed forecasts.
The analyst noted that the initial 2025 guidance provided by Vivid Seats comes with broad ranges, indicating the company’s limited visibility into consumer demand trends and the ongoing intensity of marketing efforts by competitors. The company maintains a solid financial foundation with a GOOD Financial Health score according to InvestingPro, which offers comprehensive analysis through its Pro Research Reports covering 1,400+ US stocks. Despite these challenges, the analyst remains optimistic about the stock, citing a strong live events calendar for 2025 as a positive factor.
Vivid Seats’ internal SkyBox data reveals that industry-wide order volumes have been flat or declining over the past six weeks. This trend marks a shift from the strong start to the 2025 calendar year, which saw double-digit growth in order volumes. The company’s revenue growth remains robust at 13.91% over the last twelve months, though InvestingPro analysis indicates net income is expected to decline this year. The data suggests a change in the trajectory of consumer engagement with live events, which could be influencing the company’s performance and outlook.
The maintained Buy rating indicates that DA Davidson still sees potential value in Vivid Seats’ shares despite the lower price target. This valuation adjustment reflects the firm’s recalibration of expectations based on the mixed financial results and market data provided by Vivid Seats.
Investors and stakeholders in Vivid Seats Inc. are encouraged to consider the updated financial metrics and industry data as they assess the company’s market position and potential for growth amidst the evolving landscape of the live events industry.
In other recent news, Vivid Seats Inc. reported a slight year-over-year increase in fourth-quarter revenues to $199.8 million, but a significant 87% drop in net income to $14.3 million for the full year. The company’s Marketplace Gross Order Value (GOV) also decreased by 1% to $3.89 billion. Despite these financial challenges, Vivid Seats’ full-year adjusted EBITDA rose by 7% to $151.4 million. Analysts have reacted to the company’s performance with mixed responses. Benchmark maintained a Buy rating but reduced the price target to $6, noting the company’s resilience in a competitive market. Morgan Stanley (NYSE:MS) lowered its price target to $3.75, maintaining an Equalweight rating, highlighting the intense competition in the secondary ticketing sector. Meanwhile, Raymond (NSE:RYMD) James downgraded the stock to Market Perform with a $5 price target, acknowledging the challenging market conditions. Canaccord Genuity also adjusted its price target to $5 while maintaining a Buy rating, citing the company’s strategic focus on margins. Vivid Seats has projected its 2025 Marketplace GOV to range between $3.7 and $4.1 billion, with revenues expected between $730.0 and $810.0 million.
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