SMWB Should I Buy
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Similarweb Ltd (SMWB) is not a strong buy at the moment for a beginner investor with a long-term focus. While the company has shown improvement in financial metrics such as revenue growth and reduced net loss, the technical indicators are bearish, and the stock is in an oversold condition. Additionally, there are no strong positive catalysts or trading signals to suggest immediate upside potential. The lack of recent news, neutral insider/hedge fund activity, and no significant congressional trading data further support a cautious approach.
The technical indicators for SMWB are bearish. The MACD histogram is negative and expanding downward, the RSI indicates an oversold condition at 15.355, and the moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its key support level of 3.887, with resistance levels at 5.232 and 5.647. The current pre-market price of 3.95 is slightly above the support level, but the overall trend remains weak.
The company's financials for Q3 2025 show positive growth trends, including a 10.94% YoY revenue increase, a 68.78% improvement in net income, and a 66.67% increase in EPS. Gross margin also improved to 79.67%.
Technical indicators are bearish, and the stock is in an oversold condition. Analysts have lowered the price target from $12 to $10, citing elongated sales cycles and deal volatility. There is no recent news, insider activity, or congressional trading data to suggest a strong positive catalyst. Hedge funds and insiders remain neutral.
In Q3 2025, Similarweb Ltd reported a revenue increase of 10.94% YoY to $71.79M. Net income improved significantly, reducing the loss to -$4.33M (up 68.78% YoY). EPS increased to -0.05, a 66.67% improvement YoY. Gross margin rose to 79.67%, up 2.11% YoY. Despite these improvements, the company remains unprofitable.
Oppenheimer analyst Ken Wong lowered the price target from $12 to $10 while maintaining an Outperform rating. The firm highlighted elongated sales cycles and deal volatility as challenges but expects EBIT margin expansion of 200-300bps in FY26 due to improved execution and retention. Analysts remain cautiously optimistic but acknowledge near-term challenges.
