Verisign Stock Plunges 5% on Baird Downgrade
<p><a href='https://financialmodelingprep.com/financial-summary/VRSN'>Verisign (NASDAQ:VRSN)</a> shares dropped more than 5% intra-day today after Baird downgraded the company due to weaker domain growth. The firm lowered Verisign's rating from Outperform to Neutral and adjusted the price target from $265 to $245.</p>
<p>The analysts commented that the reduced domain growth trends, which are currently below the guided range, suggest a potential decrease in domain guidance for the year. Despite a strong start to the year, domain growth has plateaued in the last six weeks, with the current domain count at 174.4 million. This figure falls slightly below the projected range of 0.5% to 2.25% year-over-year growth, implying an estimate of 174.7 to 177.7 million domain names. </p>
<p>The sluggish growth can be attributed to factors such as decreased sentiment among small and medium-sized businesses, fewer new business starts, and a reduced contribution from China, where the reopening has not met expectations.</p>
<p>Despite the downgrade, the analysts maintained a positive long-term view on the stock, considering it a secure investment and highlighting its strong free cash flow potential.</p>

NASDAQ:VRSN