Why Needham Backed Similarweb’s AI Ambitions Despite Ongoing Profitability Struggles

Similarweb Ltd. (NYSE:SMWB) is 1 of the best‑performing small‑cap tech names implicit the past fewer years, and its latest developments caught renewed expert interest.

On November 17, Needham & Company LLC reiterated a “Buy” standing connected Similarweb, with a terms people of $14.00. Their bullish stance was driven by what they called a important “large connection exemplary (LLM) information opportunity,” which they estimation could go a near‑$1 cardinal gross watercourse implicit time. Needham besides pointed to improved go‑to‑market execution and aboriginal signs of amended lawsuit retention, which whitethorn boost gross retention metrics heading into fiscal 2026.

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This standing came conscionable days aft the company’s Q3 2025 net (released Nov 11), successful which Similarweb reported EPS of $0.05, beating statement of $0.02, portion generating $71.79 cardinal successful revenue, conscionable shy of the ~$71.95 cardinal analysts expected.

Still, the 4th was marked by a antagonistic nett borderline of –11.2% and a antagonistic instrumentality connected equity of –78.25%, underscoring that profitability remains elusive adjacent arsenic top‑line and per‑share metrics somewhat bushed expectations.

Similarweb Ltd. (NYSE:SMWB) offers a cloud‑based integer quality level that aggregates and analyzes web and app postulation information from millions of sites and applications globally. Businesses, marketers, and analysts usage its insights to way marketplace trends, benchmark competitors, optimize integer strategy, and marque data‑driven decisions.

While we admit the imaginable of SMWB arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None.