JPMorgan Downgrades Riskified (RSKD) to Underweight From Neutral

Riskified Ltd. (NYSE:RSKD) is one of the best long-term penny stocks to buy right now. On August 20, JPMorgan analyst Reginald Smith downgraded Riskified Ltd. (NYSE:RSKD) to Underweight from Neutral without assigning a price target.

The analyst told investors in a research note that Riskified Ltd.’s (NYSE:RSKD) volume growth and revenue have trailed the broader e-commerce group, attributed to weakness within travel and the luxury sector.

The firm is now “increasingly skeptical” about Riskified Ltd.’s (NYSE:RSKD) ability to scale into its 2026 adjusted EBITDA margin targets of 15%-20%, creating an overhang on the shares.

Riskified Ltd. (NYSE:RSKD) is involved in fraud prevention solutions, empowering businesses by making e-commerce safe, frictionless, and accessible. The company operates an electronic commerce risk management platform that enables online merchants to develop trusted relationships with its customers.

While we acknowledge the potential of RSKD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.