IPO Stock Of The Week and artificial intelligence leader Klaviyo (KVYO) is building a new base as it recovers from a sharp pullback last month. The AI stock is one of the best names to watch on Investor’s Business Daily’s IPO Leaders screen.
Klaviyo’s marketing platform utilizes advanced machine learning and AI capabilities to enable businesses to harness their data to send messages to potential customers across email, text messages and browser notifications.
↑
X
Here’s How New Big AI Winners And A Changing Political Landscape Will Move The Market In 2025
Shopify (SHOP) and Boston-based Klaviyo forged an alliance in 2022. Klaviyo serves as Shopify’s recommended email provider for high-volume merchants. Shopify also made a strategic $100 million investment in Klaviyo. Before the IPO, Shopify owned about 11% of Klaviyo.
The marketing automation provider went public in September 2023, upping its initial public offering price range amid views that the IPO market was heating up at the time. Klaviyo debuted at 30 per share, above its estimated range of 27 to 29. The Klaviyo IPO raised about $345 million.
On Nov. 6, Klaviyo reported adjusted earnings of 15 cents per share on sales of $235.1 million, which represented year-over-year increases of 67% and 34%, respectively. The company boasts two quarters of accelerating earnings growth, from 18% to 50% to 67%. Accelerating earnings growth is a hallmark of big stock market winners.
For the full year, Wall Street expects the company’s earnings to grow 25%, with an increase of 15% in 2025, per IBD MarketSurge.
The ‘Apps’ Have It — So Does Palantir And 26 Other Stocks
AI Stock Forms Latest Base
Following the company’s earnings report, shares plunged more than 16% to break down below their 50-day moving average in heavy volume. That was a clear sell signal.
But following a five-week win streak, the stock is back near its highs and forming the right side of a cup base that has a 41 buy point. Investors could use the week’s high at 40.98 for a slightly lower entry.
Bullishly, the relative strength line has also rebounded sharply in sync with the stock. Look for it to hit a new high if the stock is able to muster the strength for a breakout to new highs.
A positive signal is that the latest base formation is a second-stage base, still considered early in the stock’s long-term move. Early-stage bases are more likely to net bigger gains than later-stage formations. That’s another reason the AI stock one of the best names to watch.
The IBD Stock Checkup shows that Klaviyo stock boasts a perfect 99 IBD Composite Rating.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on the Dow Jones Industrial Average and the stock market today.
YOU MAY ALSO LIKE:
Check Out IBD’s New Exposure Levels To Help You Stay In Step With The Market Trend
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
Spot Buy Points And Sell Signals With MarketSurge Pattern Recognition
