Klaviyo’s KVYO Soars 14.98% on Q2 Earnings Surge and AI-Driven Growth Momentum

Summary
• Klaviyo (KVYO) surges 14.98% intraday to $36.49, driven by Q2 revenue growth of 32% to $293.1M and raised FY25 guidance.
• CEO Andrew Bialecki highlights AI-native platform expansion, including the beta launch of Klaviyo Service.
• Stifel upgrades price target to $42 from $40, citing strong gross margins and international growth.

Klaviyo’s stock erupted in post-earnings trading, surging 14.98% to $36.49 as of 2:12 PM ET. The rally followed a Q2 revenue beat of $293.1M (32% YoY) and a 27–28% YoY growth guidance raise. With a 76% gross margin and 42% EMEA/APAC growth, the AI-driven CRM platform is redefining B2C engagement. The stock’s 52-week high of $49.55 remains a key psychological barrier.

Q2 Earnings Beat and AI Expansion Ignite Investor Optimism
Klaviyo’s 14.98% intraday surge was fueled by a Q2 revenue beat of $293.1M (32% YoY) and a 27–28% YoY growth guidance raise for FY25. The company highlighted 38% YoY growth in large customers (ARR >$50K) and 42% international revenue growth in EMEA and APAC. The beta launch of Klaviyo Service, an AI-powered customer service suite, underscored its platform expansion. Stifel’s $42 price target upgrade and Cantor Fitzgerald’s $48 target further amplified bullish sentiment, while non-GAAP operating income of $40.9M and $59.3M free cash flow validated operational efficiency.

CRM Sector Gains Momentum as Klaviyo Leads AI Innovation
The CRM sector, led by Salesforce (CRM) up 0.32%, saw Klaviyo outperform with a 14.98% rally. Salesforce’s 0.32% gain reflects broader AI adoption in customer engagement, but Klaviyo’s AI-native platform and 76% gross margin position it as a disruptor. The stock’s 14.98% move outpaced the sector’s average 2–3% gains, driven by its focus on B2C AI personalization and 32% YoY revenue growth.

Options and ETF Plays for Klaviyo’s AI-Driven Rally
• 200-day average: 36.22 (above) • RSI: 43.11 (oversold) • MACD: -0.57 (bearish) • Bollinger Bands: 34.31 (upper), 32.09 (middle), 29.88 (lower)

Klaviyo’s 14.98% rally has pushed it above its 200-day average of $36.22, with RSI at 43.11 indicating oversold conditions. The MACD (-0.57) remains bearish, but the stock’s 76% gross margin and AI-driven growth suggest short-term resilience. Key levels to watch: $35.3 (current price), $36.49 (intraday high), and $32.09 (Bollinger middle band).

Top Options:
• KVYO20250815C35 (Call, $35 strike, Aug 15):
- IV: 49.18% (moderate)
- Leverage: 23.74%
- Delta: 0.605 (moderate sensitivity)
- Theta: -0.140 (high time decay)
- Gamma: 0.1328 (high sensitivity to price moves)
- Turnover: 93,653 (liquid)
- Payoff (5% up to $37.07): $2.07/share. This call offers high gamma and leverage for a continued rally, with liquidity to exit.

• KVYO20250815P35 (Put, $35 strike, Aug 15):
- IV: 62.35% (high)
- Leverage: 30.97%
- Delta: -0.409 (moderate bearish)
- Theta: -0.005 (low time decay)
- Gamma: 0.1057 (moderate sensitivity)
- Turnover: 1,970 (liquid)
- Payoff (5% up to $37.07): $0.00 (out of the money). This put offers downside protection with high IV, ideal for volatility plays.

Action: Aggressive bulls should buy KVYO20250815C35 for a 23.74% leveraged play on a $37.07 target. Conservative traders may short KVYO20250815P35 if the stock consolidates below $35.

Backtest Klaviyo Stock Performance
The backtest of KVYO's performance following a 15% intraday surge shows mixed results. While the ETF experienced a positive surge, it underperformed in the short term. The 3-day win rate was 54.76%, indicating that the ETF declined in the three days following the intraday surge. The 10-day win rate was lower at 50.95%, and the 30-day win rate was 52.86%. This suggests that while the ETF had a strong starting point, it faced challenges in maintaining its gains in the following days.

Klaviyo’s AI-Driven Momentum: Hold for $37.07 or Watch $32.09 Support
Klaviyo’s 14.98% surge is underpinned by AI expansion, 32% YoY revenue growth, and a 76% gross margin. The stock’s 200-day average of $36.22 and Bollinger middle band at $32.09 are critical levels. If $37.07 (5% up) holds, the 23.74% leveraged KVYO20250815C35 could deliver $2.07/share. However, a breakdown below $32.09 would trigger a reevaluation. The CRM sector, led by Salesforce’s 0.32% gain, remains supportive. Investors should hold for the $37.07 target or exit if $32.09 fails.