
Shares of Inuvo Inc. (INUV) sank more than 30% on Thursday after the company flagged a steep fourth-quarter (Q4) revenue shortfall, prompting H.C. Wainwright to issue a sharp price target cut.
H.C. Wainwright slashed its price target on Inuvo to $6 from $10, citing a lower revenue forecast, according to The Fly. This still represents a 150% upside from the current price.
The firm also noted that revenue headwinds continued into January but highlighted management’s expectation of a rebound in the coming months. H.C. Wainwright reiterated a ‘Buy’ rating on the stock.
Inuvo said it expects Q4 2025 net revenue of about $14 million, down roughly 47% from a year earlier and nearly half of Wall Street’s expectations of $27.3 million, according to Fiscal.ai data.
The company said the miss was largely driven by an intentional pullback in the company’s Platform product line, an AI-driven audience modeling tool for advertising. For the full-year 2025, Inuvo expects revenue of about $86 million, representing 3% year-over-year growth but still below analyst estimates of $99.3 million.
“During the quarter, we prioritized advertising quality, scalability, and compliance over short-term volume, leading to a near-term reduction in revenue. While we had flagged challenges on our Q3 conference call, the impact ended up greater and more prolonged than expected, extending through Q4 and into January. We have reason to believe that revenue will recover in the months ahead,” said outgoing Inuvo CEO Rich Howe.
Separately, the company announced that Rob Buchner has been appointed as Chairman and CEO effective February 1, succeeding Richard Howe, who held the post for 15 years
While retail chatter on Stocktwits was ‘high,’ sentiment remained in the ‘neutral’ territory over the past 24 hours.
One bullish user sees the sell-off as an overreaction.
Another user sees the CEO change as a positive development for the company.
INUV stock has declined more than 50% over the past year.
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