SEMR Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
SEMR is not a good buy for a beginner investor with a long-term focus. The stock is in the process of being acquired by Adobe for $12 per share, which limits its upside potential. Additionally, the company's financial performance shows significant declines in net income, EPS, and gross margin, making it unattractive for long-term investment.
The technical indicators show a neutral to slightly bearish trend. The MACD is below 0 and negatively contracting, RSI is neutral at 27.238, and moving averages are converging. The stock is trading near its pivot level of 11.86, with resistance at 11.902 and support at 11.818.
The acquisition by Adobe provides a guaranteed exit at $12 per share, which is a solid outcome for investors given concerns about AI disrupting SEMrush's business.
The acquisition caps upside potential at $12 per share, and analysts have downgraded the stock to Hold or Market Perform. Additionally, the company's financials show significant declines in profitability metrics, and there is no recent news or significant trading activity to suggest a positive near-term catalyst.
In Q3 2025, revenue increased by 15.05% YoY to $112.08M. However, net income dropped by -295.70% YoY to -$2.14M, EPS fell by -200% YoY to -$0.01, and gross margin declined by 2.80% YoY to 80.17%.
Analysts have downgraded the stock to Hold or Market Perform following the announcement of the Adobe acquisition. The price target is set at $12, which aligns with the acquisition price, and no higher bids are expected.
