Klaviyo (KVYO) Stock Plunges 26.57% on Week as Piper Sandler Cuts Price Target Amid Growth Concerns

Klaviyo (KVYO) shares fell 0.04% on Thursday, marking a seventh consecutive day of declines as the stock dropped 26.57% over the past week. The price hit an intraday low of $26.80, its lowest level since April 2025, amid persistent investor skepticism about its growth trajectory and operational efficiency.

The decline follows a price target reduction by Piper Sandler, which cut its outlook for KVYO from $55 to $50, citing concerns about market capture and margin pressures. The firm noted that Klaviyo, despite serving 176,000 customers, is only capturing 1% of its potential market, highlighting challenges in scaling its AI-driven transformation. The downgrade contributed to a four-day losing streak earlier this month, including a 12.07% drop on September 26.

Volatility intensified after the company’s September 21 IPO, which saw the stock surge 23% on its debut before retreating to levels below its $30 offering price. By October 4, the stock had fallen 10.86% from its IPO price. The mixed reception underscores investor uncertainty about Klaviyo’s ability to meet long-term growth expectations, particularly as its 8.1x price-to-sales ratio remains significantly above the industry average.

Executive actions also weighed on sentiment. CEO Andrew Bialecki sold $7.49 million in shares under a pre-arranged trading plan in late September, triggering a 7.83% drop on September 28. While the sale was legally structured, it raised concerns about leadership confidence amid broader market skepticism. The timing—coinciding with an AI product launch—diminished the impact of new tools like Marketing Agent and Customer Agent, which aim to automate campaigns and customer support.

Analysts remain divided on Klaviyo’s AI strategy, which seeks to shift from a traditional marketing platform to an AI-assisted model. While the company’s three-year revenue growth of 223% and projected 22% annual growth through 2026 highlight its potential, execution risks and margin pressures in its SMS business remain unresolved. With a high valuation and limited profitability, the stock’s near-term outlook hinges on whether it can demonstrate scalable AI-driven efficiencies and address operational bottlenecks.