10 Worst Artificial Intelligence Stocks Under $50 According to Short Sellers

4) Klaviyo, Inc. (NYSE:KVYO)

Share Price as of September 20: $34.04

Short % of Float (As of August 30): 13.37%

Number of Hedge Fund Holders: 23

Klaviyo, Inc. (NYSE:KVYO) offers a software-as-a-service platform in the US, other Americas, the Asia-Pacific, Europe, the Middle East, and Africa. Klaviyo AI, complete with industry-leading features, helps businesses to see revenue-driving opportunities.

As of 30 August, Klaviyo, Inc. (NYSE:KVYO)’s short % of float stood at ~13.37%. The short sellers believe that the company’s stock price is likely to remain under pressure mainly due to the expected further net revenue retention (NRR) degradation along with a lack of growth in total logo additions. Klaviyo, Inc. (NYSE:KVYO) continues to face potential obstacles in its gross margins, with a decline expected in 4Q 2024. This is because of SMS marketing efforts’ growth and seasonal nature.

On the other hand, Wall Street believes that Klaviyo, Inc. (NYSE:KVYO) should be able to continue its strong growth trajectory mainly due to the strength in its upmarket strategy. Next, the Europe, Middle East, and Africa (EMEA) region, which remains a tough market for software companies, supported Klaviyo, Inc. (NYSE:KVYO), courtesy of product enhancements like language localization and increased SMS features.

Market experts believe that Klaviyo, Inc. (NYSE:KVYO)’s operating margin is expected to remain stable moving forward due to its strategic investments in sales capacity and product strategy development. The company’s competitive advantage revolves around its strong capabilities around data, which should help it achieve healthy revenue growth.  Klaviyo, Inc. (NYSE:KVYO) announced a collaboration with TikTok, and it is focused on integrating its customer segmentation tools with this social media platform. This collaboration should help the company streamline ad targeting and improve relationships with potential buyers. The company’s expansion into SMS in 9 countries, together with the rollout of new features like multi-account management systems, should help improve market share.

Needham & Company LLC restated a “Buy” rating on the shares of Klaviyo, Inc. (NYSE:KVYO), issuing a price target of $40.00 on 4^th September. The number of hedge funds tracked by Insider Monkey owning stakes in Klaviyo, Inc. (NYSE:KVYO) increased to 23 in 2Q 2024, from 22 in the previous quarter.