VTEX Plunges 15.51% to 2023 Lows Despite Strong Q3 Earnings, Buy Rating

VTEX (VTEX) fell to its lowest level since May 2023 on Nov. 8, with an intraday decline of 15.51% amid continued weakness. The stock has lost 13.66% over the past two trading days, extending a downward trend that has pushed its valuation to multi-year lows.

Despite strong third-quarter earnings and optimistic guidance for 2025, the stock underperformed. VTEX reported $59.6 million in revenue for Q3, a 6.4% year-over-year increase, and exceeded earnings expectations. The company also projected mid-20s non-GAAP operating margins for Q4 and a 9.3%-10.7% FX-neutral subscription revenue growth for 2025. A Jefferies upgrade to “Buy” further underscored institutional confidence, citing the firm’s free cash flow generation and expansion potential in Latin America. However, these positives failed to offset investor concerns, as the stock continued its sharp decline.

The recent selloff contrasts with VTEX’s long-term strategic advantages, including its scalable SaaS platform for digital commerce and diversified market presence across 13 countries. Analysts note that the company’s ability to convert revenue into free cash flow and capitalize on e-commerce growth in Latin America remains critical. Yet, short-term volatility suggests market skepticism about its capacity to meet 2025 targets. With the stock trading near its 2023 trough, investors will closely watch upcoming results and operational execution to gauge if the dip reflects undervaluation or deeper near-term challenges.