RSKD - Why Riskified Stock Jumped Today
2024-05-15 16:38:31 ET
Shares of enterprise software company Riskified (NYSE: RSKD) jumped on Wednesday after the company reported financial results for the first quarter and showed meaningful progress in important areas. As of 3:10 p.m. ET today, the stock was up 14%.
Riskified's software helps companies detect a more-accurate number of fraudulent purchases, boosting sales and lowering charge-backs, in theory. In the first quarter, the company's merchandise volume was up 17% year over year, and its revenue was up 11%. That's not bad, but the bigger deal is that its profitability is up.
Riskified has used artificial-intelligence (AI) software since before it was cool. But how are investors to know how effective it is? Well, the best thing to watch is the company's gross margin.
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Why Riskified Stock Jumped Today