Vimeo | VMEO | Long at $3.87Vimeo NASDAQ:VMEO provides a cloud-based platform for video creation, hosting, and sharing - primarily serving businesses, creators, and enterprises for professional video content management. While NASDAQ:VMEO has a **lot** of competition, it is a rather "healthy" company:
Debt-free (a rarity out there...)
Maintained profitability over the last twelve months, with a healthy gross profit margin of 78%
Earnings are forecast to grow 34.76% per year
[*}Revenue growth rate through 2027 is projected at 5.36% (modest)
Adjusted EBITDA guidance raised to $35 million, up from $25-30 million
Upcoming product developments, including AI-powered features and new SKUs, are expected to drive further growth
Insider bought over $868,000 in shares in the last year at an average price of $5.04
Subscriber growth is a concern...
From a technical analysis perspective, the stock price is currently near the bottom of my historical simple moving average bands. This region is typically an area of consolidation. The two open price gaps below the current price on the daily chart (down to $3.38) will likely get closed in the near-term before a move up. I do believe this is a risky investment, though, given the competition and economic headwinds. I would not be surprised if the market flipped and took this down near or below $1... But, if one is going purely by what the company reports concerning fundamentals and general growth, this is an undervalued stock in the $3 range.
Thus, if the insider/company hype is true, NASDAQ:VMEO is in a personal buy zone at $3.87 - with near-term risk of the stock dropping to close the price gaps on the daily chart down to $3.38... or below.
Targets into 2028:
$5.00 (+29.2%)
$6.40 (+65.4%)
