Group 1 - Rapid7 Inc. is considered one of the best small-cap tech stocks to invest in currently, with recent price target adjustments from analysts [1] - Mizuho analyst Gregg Moskowitz reduced the price target for Rapid7 from $20 to $16 while maintaining a Neutral rating, citing valuation compression as a primary driver [1][2] - Truist also lowered its price target for Rapid7 from $18 to $14 with a Hold rating, anticipating strong Q4 results but conservative guidance for 2026 [3] Group 2 - The firm noted solid public cloud performance and strong AI adoption, but expressed concerns over moderate budget activity and the impact of AI-related disruption on software company multiples [2] - Despite steady demand from IT budget holders, software equities, including Rapid7, face significant headwinds [3] - Rapid7 provides cybersecurity software and services under various brand names, including Rapid7, Nexpose, and Metasploit [4]

Core Viewpoint - Rapid7 is a cybersecurity company that has consistently beaten earnings estimates, making it a strong candidate for potential investment opportunities in the upcoming quarterly report [1]. Earnings Performance - In the most recent quarter, Rapid7 reported earnings of $0.57 per share, exceeding the expected $0.45 per share, resulting in a surprise of 26.67% [2]. - For the previous quarter, the company reported $0.58 per share against an expectation of $0.44 per share, achieving a surprise of 31.82% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Rapid7, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better has historically resulted in a positive surprise nearly 70% of the time [6]. Current Earnings ESP - Rapid7 currently has an Earnings ESP of +1.38%, suggesting that analysts are optimistic about the company's earnings prospects [8]. - The positive Earnings ESP, along with a Zacks Rank of 1 (Strong Buy), indicates a high probability of another earnings beat in the upcoming report scheduled for February 10, 2026 [8].

BOSTON, Jan. 15, 2026 (GLOBE NEWSWIRE) -- Rapid7, Inc. (NASDAQ: RPD), a leader in threat detection and exposure management, today announced that the company will release its fourth quarter and full year 2025 financial results on Tuesday, February 10, 2026, after the financial markets close. The company will host a conference call that same day to discuss its results and business outlook at 4:30 p.m. Eastern Time. To register for the live event please visit: https://q4-2025-rapid7-earnings-call.open-exchange ...

Core Viewpoint - Rapid7 (RPD) has experienced a significant downtrend, with a 13.5% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - RPD's current RSI reading is 28.43, indicating that heavy selling may be exhausting itself, which could lead to a price rebound [5]. - Stocks oscillate between overbought and oversold conditions, and RSI helps identify potential reversal points, making it a useful tool for investors seeking entry opportunities [3]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding RPD, with a 1.9% increase in the consensus EPS estimate over the last 30 days, suggesting potential price appreciation [7]. - RPD holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [8].

Core Viewpoint - China has mandated that companies discontinue the use of cybersecurity products from American and Israeli firms, citing concerns over data security and potential ties to intelligence agencies [1][3][4]. Group 1: Government Directive - Chinese companies are required to identify and replace cybersecurity products from specified foreign firms with domestic alternatives by the first half of 2026 [2]. - The directive aims to prevent sensitive data from being sent overseas and to mitigate vulnerabilities for customers [2]. Group 2: Accusations and Market Reaction - The document alleges that US and Israeli cybersecurity firms have connections to intelligence agencies, although no evidence was provided [3]. - Following the announcement, several Chinese cybersecurity stocks experienced significant gains, with NSFOCUS Technologies rising by 14.7% and Qi An Xin Technology increasing by 9.6% [3]. Group 3: Companies Affected - The ban includes companies such as Palo Alto Networks, Fortinet, Check Point, Recorded Future, CrowdStrike, and others, with some of these firms not selling products in China [5]. - Representatives from Check Point and Orca Security stated they had not received any notification regarding the ban [5].

New runtime security capabilities reduce cloud risk faster and help security teams respond to active threats with confidenceBOSTON, Jan. 14, 2026 (GLOBE NEWSWIRE) -- Rapid7, Inc. (NASDAQ: RPD), a leader in threat detection and exposure management, announced a strategic partnership with ARMO, the creators of the open-source cloud-native security platform Kubescape and Cloud Application Detection & Response (CADR) innovator, to bring full cloud and application runtime security to the Rapid7 Command Platform. ...

Core Insights - Rapid7's top cybersecurity predictions for 2026 highlight the increasing impact of geopolitical conflicts, the rise of insider threats, and the necessity for contextual awareness in cyber defense [1][6]. Geopolitical Landscape - Geopolitical tensions will increasingly affect the cyber battlefield, with private organizations becoming proxy targets for state-aligned groups, leading to a blend of third-party and nation-state attacks [6]. - Organizations are encouraged to utilize curated threat intelligence to monitor geopolitical flashpoints and emerging advanced persistent threat (APT) tools [6]. Insider Threats - Insider threats will become a dominant cause of breaches, with actors such as disgruntled employees and negligent insiders posing significant risks [6]. - Establishing behavior baselines and regularly reviewing privilege models will be critical for organizations to mitigate these risks [6]. Contextual Awareness - Context will be essential for effective cyber performance, as defenders need more than just alerts to respond to AI-driven attacks [6]. - Integrating exposure management with detection capabilities will enhance response times and measurable impact, focusing on key metrics such as time saved and risks remediated [6]. Company Innovations - Rapid7 has experienced a year of accelerated innovation, launching new insights and expanding its Managed Detection and Response (MDR) coverage for Microsoft environments [4]. - The company aims to help organizations manage risk and detect threats in increasingly complex environments [4][8].

Summary of Rapid7 Conference Call - December 08, 2025 Company Overview - **Company**: Rapid7 (NasdaqGM:RPD) - **Industry**: Cybersecurity, specifically focusing on Managed Detection and Response (MDR) and integrated security operations platforms Key Points and Arguments 1. **Market Opportunity**: Rapid7's primary customer base consists of mid to large enterprises, particularly those with 1,000 to 20,000 employees, where security is a critical mandate. The company aims to be a premier partner for these customers by offering integrated security operations platforms that allow them to outsource security workloads [3][4][5] 2. **Growth Strategy**: The fastest-growing segment is Managed Detection and Response (MDR), which is supported by AI. Over half of Rapid7's business is derived from this segment, which is currently growing in the teens percentage-wise. The company plans to expand its AI-driven services and add more workloads over time [3][4][5][15] 3. **Leadership Transition**: Rafe Brown has recently been appointed as CFO, succeeding Tim, who is transitioning into retirement. Rafe's operational experience and ability to communicate effectively with investors were key factors in his selection [6][7][12] 4. **Growth Drivers**: Rapid7 is focusing on three main growth levers: - Expanding managed services workloads and unlocking capacity in existing workloads - Adding new workloads, with plans to introduce more in 2026 - Increasing Annual Recurring Revenue (ARR) per customer and expanding the customer base, particularly in international markets [15][16][17] 5. **Competitive Landscape**: Rapid7 competes with various companies in the DNR space, including CrowdStrike and private firms like eSentire and Arctic Wolf. The company believes its unique value proposition lies in its ability to deliver an integrated security operations service that allows customers to offload more of their security workloads [20][25][23] 6. **Profitability Improvement**: Rapid7 has improved its non-GAAP operating margin to the mid-teens, with a focus on operational efficiencies and strategic investments. The company aims to balance growth and profitability, with a focus on free cash flow generation [27][28][30][31] 7. **Cloud Security Focus**: Rapid7 is enhancing its cloud security capabilities through R&D and partnerships. The company aims to simplify security workloads and deliver them as a service, differentiating itself from competitors who prefer customers to manage their own technologies [43][44][45] 8. **Transition Challenges**: The transition to a new business model has taken longer than expected, but there is validation of the core strategy. The company emphasizes the importance of clear communication with investors regarding expectations and progress [46][47][48] 9. **Capital Structure and Liquidity**: Rapid7 is in a strong position regarding its capital structure, with sufficient cash and government securities to meet obligations. The company is open to exploring tuck-in acquisitions and investments while focusing on operational execution [54][55][56] 10. **Future Outlook**: Rapid7 is optimistic about the demand for outsourcing security workloads, driven by increasing regulatory pressures and the difficulty in hiring security staff. The company believes it is well-positioned to capitalize on these trends [37][38][62][63] Additional Important Insights - The company is focused on building a curated ecosystem of technology partners, including Microsoft, to enhance its service offerings [41][62] - Rapid7 acknowledges the need for a more systematic approach to driving ARR growth and customer expansion, which is being addressed by the new Chief Commercial Officer [17][18] - The management team is committed to transparency and effective communication with investors as they navigate the transition and growth strategy [49][51][62]

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal! AI is eating the world—and the machines behind it are ravenous. Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink. Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and b ...

Core View - The long-term growth outlook for Rapid7 (RPD) is positive, but there is near-term demand weakness leading to a hold rating [1] Company Analysis - The investment approach focuses on identifying undervalued companies with long-term growth potential, emphasizing value investing principles [1] - The strategy involves purchasing quality companies at a discount to their intrinsic value and holding them for long-term earnings and shareholder returns [1]