CMRC Should I Buy
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Commerce.com Inc (CMRC) is not a strong buy at this time for a beginner investor with a long-term strategy. The stock is experiencing significant downward pressure, both technically and fundamentally, with no immediate positive catalysts to suggest a reversal. While the RSI indicates the stock is oversold, the lack of growth visibility, weak financial performance, and negative analyst sentiment make it prudent to hold off on investing until clearer signs of recovery emerge.
The stock is in a bearish trend with MACD below zero and negatively expanding, RSI at 12.807 indicating oversold conditions, and moving averages showing bearish alignment (SMA_200 > SMA_20 > SMA_5). Key support is at 2.546, with resistance at 3.176. The stock closed at 2.55, near its support level, but the overall trend remains negative.
RSI indicates oversold conditions, suggesting a potential technical rebound. The company has improved its net income and EPS significantly YoY in Q4 2025.
Morgan Stanley downgraded the stock to Underweight, citing weakening fundamentals and lack of growth visibility. The company missed revenue expectations in Q4 2025, and its rebranding efforts appear ineffective. The stock has experienced a significant regular market decline of -10.22%.
In Q4 2025, revenue increased by 2.86% YoY to $89.5 million, but this fell short of expectations. Net income improved by 249.96% YoY to -$8.36 million, and EPS increased by 233.33% YoY to -$0.1. Gross margin improved slightly to 76.37%. Despite these improvements, the company remains unprofitable.
Morgan Stanley downgraded CMRC to Underweight from Equal Weight, lowering the price target to $4 from $6.50. The downgrade was due to weakening fundamentals, execution issues, and lack of growth visibility.
