BARK Should I Buy
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Bark Inc (BARK) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock's technical indicators are bearish, the financial performance is declining, and the analyst ratings have been downgraded with reduced price targets. While there is a potential acquisition proposal at a premium, the lack of clarity and corporate governance concerns make the situation uncertain. It is advisable to hold off on investing until more clarity on the acquisition or improved financial performance emerges.
The technical indicators for BARK are bearish. The MACD histogram is negative and expanding downward, the RSI is neutral but leaning toward oversold territory, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels, with S1 at 0.777 and S2 at 0.741, suggesting potential further downside.
GNK Holdings LLC and Marcus Lemonis proposed an all-cash acquisition of BARK at $1.10 per share, which represents a 22% premium over the CEO's $0.90 offer. This could potentially drive the stock price higher if the deal progresses.
The company's board has not substantively engaged with GNK Holdings' acquisition proposal, raising concerns about corporate governance transparency. Additionally, GNK opposes BARK's restrictive non-disclosure agreement, which could lead to legal or regulatory complications. The financial performance of the company is also deteriorating, with significant YoY declines in revenue, net income, and EPS.
In Q3 2026, BARK's financial performance showed significant declines: Revenue dropped by 22.14% YoY to $98.45M, Net Income fell by 24.88% YoY to -$8.65M, EPS decreased by 28.57% YoY to -0.05, and Gross Margin slightly declined to 62.53%. These figures indicate a struggling financial position.
Analysts have downgraded their price targets for BARK to $1.50 from $2, citing mixed Q3 results with revenue below expectations but profitability within guidance. One analyst maintains a Buy rating, while another has a Hold rating, reflecting cautious sentiment.
