NICE stock has declined 20.4% due to challenges in revenue and competition in various segments

From Nasdaq: 2025-01-14 13:33:00

NICE Ltd. shares have fallen 20.4% over the past year, trailing the Computer & Technology sector by 29.3% and the Internet – Software industry by 30.6%. Challenges include declining service revenue and product revenue volatility due to transitioning to cloud-based services.

NICE faces tough competition in Customer Engagement and Financial Crime and Compliance segments. Competitors include Aspect, Calabrio, Genesys, Verint Systems, Avaya, Cisco Systems, Five9, and more in the Workforce Optimization and Contact Center as a Service markets.

NICE’s AI platform, including CXone Mpower, has driven automation in customer service and improved engagement. The company leads in AI-driven solutions for customer experiences, financial crime, and digital policing, monitoring billions of transactions and serving top global banks with a projected $5-billion TAM by 2028.

For Q1 FY2025, Zacks estimates NICE’s earnings at $2.90 per share, a 12.4% YoY growth, and revenues at $721.31 million, a 9.4% YoY increase. NICE carries a Zacks Rank #3 (Hold), suggesting a strategic accumulation point for investors interested in the stock.

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Read more at Nasdaq: Should You Hold NICE Stock Despite 20% Decline Over the Past Year?