Nextdoor Holdings falls as Morgan Stanley downgrades on platform rebuild concerns

Shares of advertising platform Nextdoor Holdings KIND.N down 3.6% to $1.34 premarket

Brokerage Morgan Stanley downgrades KIND to "underweight" from "equal weight", trims PT to $1.10 from $2.70

KIND's platform rebuild, called "NEXT", is introducing new uncertainty and potential risks to the company's growth, brokerage says

Morgan Stanley sees multiple downsides for KIND, including a risky platform rebuild, a volatile ad market and underperforming ad units, which could disrupt engagement and revenue

"Overall, the macro uncertainty coupled with KIND's nascent ad innovation are likely to weigh on KIND's ad growth prospects in '25/'26"- Morgan Stanley

As of last close, KIND down 41.3% YTD