Klaviyo (KYVO) on 4-Day Losses as Analyst Downgrade Lingers

We recently published 11 Stocks Failing to Keep up With The Market. Klaviyo, Inc. (NYSE:KVYO) is one of the top performers on Tuesday.

Klaviyo extended its losing streak to a fourth consecutive day on Tuesday, shedding 12.07 percent to end at $27.69 apiece, as investors continued to digest an investment firm’s price target reduction for its stock.

On Thursday, Klaviyo, Inc. (NYSE:KVYO) earned a new price target of $50 from Piper Sandler, lower than the $55 previously, following its first analyst day since 2023, where the company outlined its vision to transform to an AI-assisted platform from a marketing tool for retail brands.

Piper Sandler believed that despite its over 176,000 customers, Klaviyo, Inc. (NYSE:KVYO) was only able to capture 1 percent of its potential market.

Additionally, the company’s vision was said to be promising, but its fiscal 2028 operating margin of approximately 16 percent fell below analyst expectations, primarily due to pressure from its SMS business.

Despite the lower price target, Piper Sandler remained “overweight” for shares of Klaviyo, Inc. (NYSE:KVYO).

While we acknowledge the potential of KVYO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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