Nextdoor Holdings falls as Morgan Stanley downgrades on platform rebuild concerns

Nextdoor Holdings

13/05/2025 13:20

** Shares of advertising platform Nextdoor Holdings KIND.N down 3.6% to $1.34 premarket

** Brokerage Morgan Stanley downgrades KIND to "underweight" from "equal weight", trims PT to $1.10 from $2.70

** KIND's platform rebuild, called "NEXT", is introducing new uncertainty and potential risks to the company's growth, brokerage says

** Morgan Stanley sees multiple downsides for KIND, including a risky platform rebuild, a volatile ad market and underperforming ad units, which could disrupt engagement and revenue

** "Overall, the macro uncertainty coupled with KIND's nascent ad innovation are likely to weigh on KIND's ad growth prospects in '25/'26"- Morgan Stanley

** As of last close, KIND down 41.3% YTD

(Reporting by Padmanabhan Ananthan)

((Padmanabhan.Ananthan@thomsonreuters.com))