Riskified (NYSE: RSKD) has had a rough ride since its initial public offering in late July. Shares of the company, which uses artificial intelligence (AI) to detect fraudulent orders for e-commerce companies, jumped 40% in their first month of trading. But after concerns arose in its third-quarter earnings, the shares sunk like a stone. The stock recently traded at just $8, 78% lower than its all-time high of over $32.
While Riskified has shown the immense benefits it can bring to its customers, the company's poor third-quarter is worrisome. It will take at least a quarter or two to determine if the risk is valid or not. Until then, I wouldn't be investing in the company even if it is trading at appealing multiples.
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Is Riskified Worth Buying After Falling 70% in 2021?