What Happened?
Shares of neighborhood social network Nextdoor (NYSE:KIND) fell 32.5% in the afternoon session after the company reported weak fourth-quarter 2024 results: its number of weekly active users fell short of expectations, and revenue and EBITDA guidance for the next quarter missed Wall Street estimates, signaling a tougher road ahead. Revenue guidance reflects a decline in ad impressions as Nextdoor prioritizes product transformation over immediate monetization, while EBITDA guidance suggests a return to losses. Overall, while the quarter delivered a strong margin turnaround, the softer guidance and user growth challenges raise concerns about near-term execution risks.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Nextdoor? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Nextdoor’s shares are very volatile and have had 29 moves greater than 5% over the last year. But moves this big are rare even for Nextdoor and indicate this news significantly impacted the market’s perception of the business.
Nextdoor is down 29.8% since the beginning of the year, and at $1.70 per share, it is trading 42% below its 52-week high of $2.93 from July 2024. Investors who bought $1,000 worth of Nextdoor’s shares at the IPO in March 2021 would now be looking at an investment worth $169.85.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
