6/10/24 - $yext - best to avoid it. period. dead $ at best MT6/10/24 - vrockstar - NYSE:YEXT - the issue here guys is the market is full stop avoiding this type of factor and probably for good reason. the stock is also reflecting it which means you better know what you're doing either holding this into print. no growth top line is a massive issue where you scale software or your die. betting on some whack management speech about a buyout is horrible investing and cope. again, unless you're much closer to the situation - but realistically given the growth, this product has been replicated elsewhere so it's not a good tgt at these interest rates for anyone. add to this a lot of dilution is driving the "fake" FCF. they're cutting opex to help stem the "positive" EPS - which even if you give them credit for 40c still puts this > 10x PE. heck - i was pitching NASDAQ:NICE at nealry 15x cash adjusted PE and the market was having a tough time putting 2 and 2 together (now this AM looks like the mgmt is opening a bazooka of buyback ammunition to buy this... anyway go read my comments there). on this one you really don't have the same cash war chest if they wanted to do the same. i'd suggest this is a name that IF IT DOES POP, we probably do best to short it anything above 10%, ideally 15% which could just be a positioning rinse issue, tho shorts r low which tells me there's v little interest here. in the odd chance mgmt has something truly revolutionary to say about AI and strategy - i'll take another look.
but i think in this v difficult tape for sub scale software you're best finding gems (like NASDAQ:DLO in payments i highlighted on friday) or cyber names w small caps and good results but again risky like NYSE:S and my fav play $you. or more stable large-ish names like NASDAQ:NICE - tho that's already on the move.
i'm simply putting "short" because these comments are for me - and i think in 95/100 scenarios i'm going to find a spot to short it if i do take a position and it's to send a signal to me not to even consider a dip buy. i don't think there's a price i'd pay for this. sorry for the holders, maybe you see it differently and we should debate if the case.
gl have a good week
V