Vimeo Stock Discussion

Vimeo's current P/S ratio may not be justified due to its subdued revenue growth projections compared to the industry. This could disappoint investors if the P/S falls to levels aligning with the growth outlook. Low revenue growth could impact investor sentiment and lead to a fall in share prices.

Vimeo's rising ROCE and capital employment are promising. The company's reduced ratio of current liabilities to total assets suggests fundamental business improvements. Despite a 11% stock drop last year, these factors may offer an investment opportunity.

Vimeo's low ROE versus industry average could pose issues but reinvestment into the business seems fruitful, resulting in decent earnings growth. Forecasts predict sustained earnings expansion.

Vimeo's revenue growth prospects seem subdued compared to its sector, trading at a P/S ratio possibly unjustifiable. If P/S falls in line with growth outlook, investors less bearish than analysts may face future disappointment. The company needs business performance boost to warrant present P/S ratio.

Jefferies maintains a Buy rating on Vimeo's shares amid attractive pricing and consistent profitability, despite Vimeo's Q3 booking issues and uncertain Q4 revenue projection due to potential enterprise and macroeconomic challenges, according to Cowen.