JFrog stock declines 30% due to lower revenue guidance, but company transitioning to annual contracts

From Yahoo Finance: 2025-06-24 19:48:00

JFrog Ltd.’s stock, FROG, was trading at $40.68 on June 20th with a forward P/E of 58.14. Despite meeting Q2 earnings, the company lowered full-year revenue guidance, causing a 30% stock decline attributed to macroeconomic pressures, delayed deals, and volatile SMB usage. JFrog is transitioning to annual contracts with solid customer metrics.

Management anticipates a decline in Net Dollar Retention despite stable gross retention. Market reaction to lowered guidance was harsh, but opportunity is seen in the downturn with JFrog’s dominance in artifact management and partnership with GitHub. Current valuation offers downside protection with potential for reaching $30 per share by 2028.

Although not among the 30 Most Popular Stocks Among Hedge Funds, 43 hedge fund portfolios held FROG at the end of Q1, up from 32 in the previous quarter. While acknowledging the risk and potential of FROG, some AI stocks are seen as holding greater promise for higher returns with limited downside risk.



Read more at Yahoo Finance: JFrog Ltd. (FROG): A Bull Case Theory