Why Riskified Stock Jumped Today
Shares of enterprise software company Riskified (NYSE: RSKD) jumped on Wednesday after the company reported financial results for the first quarter and showed meaningful progress in important areas. As of 3:10 p.m. ET today, the stock was up 14%.
Riskified's software helps companies detect a more-accurate number of fraudulent purchases, boosting sales and lowering charge-backs, in theory. In the first quarter, the company's merchandise volume was up 17% year over year, and its revenue was up 11%. That's not bad, but the bigger deal is that its profitability is up.
Riskified has used artificial-intelligence (AI) software since before it was cool. But how are investors to know how effective it is? Well, the best thing to watch is the company's gross margin.
Source Fool.com
