Semrush’s stock price has taken a beating over the past six months, shedding 43.9% of its value and falling to $8.79 per share. This might have investors contemplating their next move.
A number of stocks fell in the afternoon session after the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada.
Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor.
The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
From commerce to culture, software is digitizing every aspect of our lives. This secular theme makes SaaS companies attractive investment candidates but also comes with higher valuations that cause volatility.
Unfortunately, the rich prices have haunted them over the past six months as the industry has shed 2.3%. This performance was discouraging since the S&P 500 returned 5%.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Semrush (NYSE:SEMR) and the rest of the sales and marketing software stocks fared in Q1.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Growth is a hallmark of all great companies, but the laws of gravity eventually take hold.
Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
Marketing analytics software Semrush (NYSE:SEMR) reported Q1 CY2025 results beating Wall Street’s revenue expectations, with sales up 22.4% year on year to $105 million. The company expects next quarter’s revenue to be around $108.7 million, close to analysts’ estimates. Its non-GAAP profit of $0.02 per share was 74.9% below analysts’ consensus estimates.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Companies with more cash than debt often have stronger financial flexibility, making them attractive in uncertain markets.
Without interest payments being less of a worry, these businesses can invest more in growth, innovation, or buybacks and dividends.
After a rough start to the year, small- and mid-cap software stocks may be finding their footing. Goldman Sachs analyst Adam Hotchkiss says first-quarter results across his coverage were better than feared, suggesting the worst of the downturn could be behind the sector.
Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts.
But that doesn’t mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Marketing analytics software Semrush (NYSE:SEMR) reported Q1 CY2025 results topping the market’s revenue expectations, with sales up 22.4% year on year to $105 million. The company expects next quarter’s revenue to be around $108.7 million, close to analysts’ estimates. Its GAAP profit of $0.01 per share was $0.01 below analysts’ consensus estimates.
Semrush’s stock price has taken a beating over the past six months, shedding 20.1% of its value and falling to $10.33 per share. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Semrush (NYSE:SEMR) and the rest of the sales and marketing software stocks fared in Q4.
From commerce to culture, software is digitizing every aspect of our lives. Companies bringing it to life have been rewarded with explosive earnings growth, and the upward trend shows no signs of stopping -
over the past six months, the industry has posted a gain of 9.3% while the S&P 500 was flat.
