VMEO - Why did Vimeo stock surge today? Bouncing off post-earnings drop

Vimeo Holdings (NASDAQ:VMEO) surged 14.2% Friday, a volatile rebound from what ended up as a 19% slide Thursday in response to an earnings report where revenue guidance came as a disappointment. The company posted revenue growth of nearly 27% for its fourth quarter, but signaled that growth in the first quarter would be closer to 17-19%. That's a reset, Truist Securities says in response, though at least the first half of the year is looking to be a "trough as the company is seeing green shoots" that could bring growth acceleration back. The firm has a bullish price target of $36, implying 179% upside. That revenue outlook was likely partly affected by the company's shuttering of consumer-oriented Magisto in order to refocus on serving larger businesses, Cowen suggested. KeyBanc (with a Sector Weight rating) agrees with that: The revenue forecast absorbs "deprecating" Magisto as well as challenges from forecasting post-pandemic

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Why did Vimeo stock surge today? Bouncing off post-earnings drop