Kind broken down from wedgeNovice TA, not financial advice.
To me, looks like it could fall to ~$1.90 next
KIND trade ideas
#KIND is making its moves.I like this setup for the following reasons.
1. Broke previous resistance of $3.05 with huge volume.
2. Retest and pull back on lower volume.
3. Set to join Russell 3000.
4. Double bottom.
NextDoor Negative Stock Performance Driven By Not So KIND UsersINTRODUCTION
NextDoor.com is a company out of San Francisco, California, launched in 2008. It operates a social network for thousands of neighborhoods across 11 countries. This company appears unprofitable for the last year, with a rising user base of 21%. Considering there was a lockdown thanks to the coronavirus pandemic, this company would be highly profitable as people were home on the Internet during a lockdown. However, this company still needed better stock price performance and was unprofitable. Considering the amount of strongly negative reviews of user experience on this site, it is no wonder its financials reflect the reality of this company.
Weak Fundamentals With No Profit nor Strength In Stock Price
Considering NextDoor's claims that its user base has risen 21% during a pandemic lockdown, this does not appear to reflect its stock performance or profit potential.
• Net loss was $137.9 million, compared to $95.3 million in the year-ago period.
• Total Weekly Active Users (WAU) increased by 21% year-over-year.
From:
about.nextdoor.com/press-releases/nextdoor-announces-fourth-quarter-and-full-year-2022-results
It appears that net loss grew even though weekly active user growth has improved year over year.
Vitals Metrics for KIND
The stock price of NextDoor has been dropping quite suddenly over the last few weeks. There is even a warning from Seeking Alpha about this stock's category:
Warning: 164 stores in the Communication Services sector are at high risk of performing badly
Should we worry about this? When you look at the seriously negative stock price return of -19% over the last 20 working days. Even though there was a slight positive of 2%(over 50 days) with a negative move in the previous 200 working days, there are strong sell signals with an Aroon Down of 64 which are strongly negative. Are there any fundamental reasons which drive this? Based on my calculations, I would not add this stock to any portfolio with the high volatility of 0.85, two times higher than my tolerance of 0.4.
Userbase Profile
Based on the stock price of NextDoor, it is of a penny stock status. Considering the beta is under 1, someone thinks this is a low-risk stock in your portfolio. However, as mentioned in the above volatility metric using raw stock pricing, it appears much riskier to have in your portfolio.
Also, based on various reviews online about the customer experience who uses this site are very concerned about the negative experience.
sitejabber.com/reviews/nextdoor.com#:~:text=Nextdoor
trustpilot.com/review/nextdoor.com
However, attempting to participate can often result in awful experiences. Therefore, it is unfortunate that this review has been forced to become a negative description of the Nextdoor website and to conclude that the site is outright unsafe…
The Nextdoor website is supposed to help people know what is happening in their neighborhood, but it needs to be more accurate.
websitewithnoname.com/2016/08/a-review-of-nextdoorcom.html
KIND's user experience appears not to live up to its stock symbol name. This rating correlates to the recent performance of the stock.
Symbol Price Lastdiv Beta Company name Country
KIND 2.06 0 0.431125 Nextdoor Holdings, Inc. US
Source: Financial Modelling Prep
Stock News Is Scant
There needs to be more coverage for KIND, which is most likely due to the low stock price. As reviews have been “harmful” to its users, one needs to ask if there is actual growth in its user base to attract users. Even if NextDoor or some verified source verifies the user base, one cannot deny that a negative user experience will hinder its long-term growth.
Risk Remains Negatively High
Considering NextDoor.com is 15 years old, it would have shown a profit under a favorable lockdown opportunity. As even NextDoor reports its userbase grew by 21% in a lockdown economy, KIND should have shown profit like similar companies, including Zoom. In this case, it did not happen.
Unprofitable Earning Surprises
NextDoor continues to show negative earning results that should not be considered for any portfolio. Additionally, if the website company management needs to improve user experience, NextDoor will continue to churn with users dropping off the site over the long run.
Recommendation With No Buys or Strong Upward Momentum
Considering the poor performance of KIND over the last month, it is pretty surprising not to see a sell rating for a company with poor performance. However, as three institutions are setting a hold status, there are neither buy recommendations.
Grade Is Not Top Performing
With heavyweight institutional analysts watching KIND, all of 2022 only delivered an equal weighting or neutral recommendation during a lockdown environment. They could quickly achieve a buy recommendation from one of the more extensive analysts. Unfortunately, because of their poor stock performance, KIND cannot garner any attention, resulting in further potential long-term drops. This company needs to implement new high-level strategies to improve customer user experience to attract advertisers and other market analysts.
CONCLUSION
Based on the actual user experience of NextDoor.com, one needs to ask themselves if one wants this stock to be part of their portfolio. Both the company, which is 15 years old with negative earning results under conditions that enabled it to be potentially positive, one must ask if upper management has a viable long-term strategy. As we all know, management needs to reflect a better approach, which impacts stock performance. Unfortunately, following this company is a recent failure to be profitable with no potential over the coming months. Therefore, I can only put this company at a sell rating.
KIND Long SwingPrice has tested the up trend several times in the last week and closed at the POC (point of control), the level at which the greatest volume of shares has traded in the last 12 months. The most recent close also tested the .23 fib level.
The Force Index turned positive and the MACD appears to be inching up preparing for a cross.
I want to see the price close above 3.48 and with that anticipate a break out of the wedge.
targeting: 4.10 in the short term
consolidation faze is active! neutral on this one KIND stuck between strong support and resistance and in consolidation mode. We need to wait for a clear break above or below to take a position.
Also notice how its at RSI resistance, pay attention, we most likely dip from here.
