IB Net Payout Yields Model

Yext: Flawed Focus On Profits

 

  • Yext reported disappointing Q3 results with only 2% growth despite hype around AI.
  • YEXT's focus on profits over growth has hurt stock performance.
  • The stock is now a call option on management's ability to return the business to growth with Yext trading at only 1x EV/S targets.
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Yext (NYSE:YEXT) reported a disappointing FQ3 as the company failed to make any progress towards returning to solid growth. The AI search company has prioritized profits over growth in the last year to the demise of the stock. My investment thesis is still Bullish on the stock at the current ultra-cheap valuation, but Yext isn't likely to rally until the company prioritizes and produces growth.

Read the full article on Seeking Alpha. 

Disclosure: Long YEXT. Please review the disclaimer page for more details. 

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