We came across a bullish thesis on Similarweb Ltd. (SMWB) on Twitter by 1rabbitresearch. In this article, we will summarize the bulls’ thesis on SMWB. Similarweb Ltd. (SMWB) stock was trading at $8.57 as of Nov 5th. SMWB’s forward P/E was 65.79 according to Yahoo Finance.
A closeup of a computer screen with data-driven analytics and business solutions displayed.
Similarweb (SMWB) holds a strong leadership position in the web analytics space, backed by unique and valuable data assets that set it apart from competitors. The company is currently experiencing accelerated revenue growth, fueled by a resurgence in demand and a significant reduction in down-sell activities, which has improved its profitability. This growth trajectory is further bolstered by the ongoing shift to digital channels across both B2C and B2B commerce, expanding Similarweb’s total addressable market and reinforcing its relevance in an increasingly data-driven business landscape. With businesses relying more on digital insights to drive strategies, Similarweb is well-positioned for sustained growth in the intermediate term.
The company’s performance has been robust enough to attract positive analyst attention, with a price target set at $11 based on a 3.5x EV/Revenue multiple for fiscal year 2025. This valuation could increase further if revenue growth continues at a high rate or if profitability improves beyond current projections, highlighting a promising outlook for investors. Similarweb’s ability to harness valuable data for actionable insights remains central to its business model, and with a recovering demand environment, the company is poised to capture more market share and continue building its financial strength.
Similarweb Ltd. (SMWB) is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held SMWB at the end of the second quarter which was 13 in the previous quarter. While we acknowledge the risk and potential of SMWB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SMWB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.