Why Nextdoor (KIND) Stock Is Falling Today

What Happened?

Shares of neighborhood social network Nextdoor (NYSE:KIND) fell 32.5% in the afternoon session after the company reported weak fourth-quarter 2024 results: its number of weekly active users fell short of expectations, and revenue and EBITDA guidance for the next quarter missed Wall Street estimates, signaling a tougher road ahead. Revenue guidance reflects a decline in ad impressions as Nextdoor prioritizes product transformation over immediate monetization, while EBITDA guidance suggests a return to losses. Overall, while the quarter delivered a strong margin turnaround, the softer guidance and user growth challenges raise concerns about near-term execution risks.

After the initial drop the shares shed some of the losses and close the day $1.77, down 29.1% from previous close.

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What The Market Is Telling Us

Nextdoor’s shares are very volatile and have had 29 moves greater than 5% over the last year. But moves this big are rare even for Nextdoor and indicate this news significantly impacted the market’s perception of the business.

Nextdoor is down 28.9% since the beginning of the year, and at $1.72 per share, it is trading 41.3% below its 52-week high of $2.93 from July 2024. Investors who bought $1,000 worth of Nextdoor’s shares at the IPO in March 2021 would now be looking at an investment worth $172.00.

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