The stock price of Vimeo (NASDAQ: VMEO) rallied slightly in Wednesday premarket trading, the video platform’s investors reacted kindly to the monthly metrics released yesterday, spurring stock growth early this morning.
Youtube’s main competitor; Vimeo has had a difficult time maintaining solid levels of growth recently. Since May this year, the Vimeo stock price has remained in a strong bearish trend – tanking from levels of $56 and upwards to today’s level of $29.75 – incorporating a premarket gain of 11%.
The support comes as a welcome break from a pressured market environment. In August, Vimeo reported its slowest revenue growth in over a year, so it’s refreshing to see some changes this time around. The monthly metrics for September 2021 were announced last night, and whilst the revenue remained unchanged at a gain of 33%, this could be a sign that the pandemic digital slipstream is fading away, and Vimeo’s performance is leveling out.
However, there are other, more prominent factors at play here. While some could argue that revenue growth is somewhat stagnant based on last month’s metrics, the company also recorded a 14% rise in subscribers and a 16% rise in average revenue per user – year on year.
Vimeo’s competitive digital landscape acts as a lingering burden for consistent company growth, yet with data illuminating a monthly rise in subscribers – there is evidently room for Vimeo in the wider picture. Yesterday’s metrics sparked a much-needed glimmer of hope for Vimeo stock, yet it will need a lot more to reverse such a strong trend.
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