Riskified Ltd (RSKD) Stock Forecast & Price Target

Riskified Ltd has demonstrated robust growth potential, highlighted by a notable year-over-year increase in gross merchandise volume (GMV), which rose 8.9% to $37.8 billion, surpassing earlier expectations and showcasing sequential growth acceleration for the first time in four quarters. The company has also raised its revenue guidance for 2025, indicating a positive outlook, with the bottom end of the forecast increased by $2 million to $336 million, driven by strong performance in high-growth categories such as Money Transfer and Payments, which alone saw 90% year-over-year growth. Furthermore, Riskified's international exposure is expanding, with significant traction in APAC and EMEA markets, further underscoring the company's growth prospects across various verticals.

Riskified Ltd is facing significant growth challenges due to a reliance on a concentrated customer base, as churn events among these clients could lead to substantial reductions in revenue. The macroeconomic slowdown further exacerbates these issues, negatively impacting the overall marketplace, while also intensifying competition within the fraud prevention sector, which could hinder the company's ability to attract new merchants and retain existing ones. Additionally, the fashion and luxury goods category, a key segment for Riskified, is showing signs of weakness with declining growth rates, which raises concerns about the potential for increased financial losses stemming from mismanaged chargebacks.