Olo shares opened 35% down on Friday: buy the dip?

Shares of Olo Inc (NYSE: OLO) opened about 30% down on Friday after the restaurant technology company disappointed both on Q2 results and future guidance.

Stifel downgrades Olo shares to ‘hold’

Sentiment worsened further after a Stifel analyst said the sell-off was not an opportunity to build a position in Olo shares.

This morning, Brad Reback downgraded the stock to “hold” and lowered his price target to $9.0 – roughly in line with where it’s trading at the time of writing. He wrote:

Olo Inc Q2 financial highlights

• Lost $11.7 million versus the year-ago $2.4 million
• Per-share loss climbed from 2 cents to 7 cents
• Adjusted for one-time items, EPS stood at 1 cent
• Revenue went up 27% year-on-year to $45.6 million
• Consensus was “breakeven” on $45.8 million in revenue

The NYSE-listed firm ended the quarter with $464.7 million in cash, equivalents, and investments, as per the earnings press release. Reback added:

Olo lowers guidance for the full year

For the full financial year, Olo now forecasts its revenue to fall between $183 million and $184 million. Previously, it had guided for $195 million to $197 million. The Stifel analyst concluded:

Olo shares are now trading at an all-time low.