Riskified: Strong Value Proposition, Large TAM; Multiple Expansion Likely

Jul. 12, 2024 11:11 AM ETRiskified Ltd. (RSKD) StockRSKD
(10min)

Summary

  • RSKD is recommended as a buy due to its focus on reducing fraud costs for e-commerce merchants and the potential for growth in the global e-commerce market.
  • Fraud is a major challenge in the e-commerce space, impacting merchants' revenue and customer experience.
  • RSKD's AI-powered fraud solution platform helps merchants approve orders, reducing fraud costs and improving customer satisfaction.

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Investment summary

My recommendation for Riskified (NYSE:RSKD) is a buy rating. RSKD addresses a major challenge in the e-commerce space: fraud, which is a cost to merchants as they lose revenue and risk customer churning away

This article was written by

I focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I aim to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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