Klaviyo (KVYO) is back in focus after its second quarter 2026 earnings update, where the company paired raised revenue guidance and fresh M&A activity with ongoing stock buybacks and an acquisition of AI startup Agency.

Klaviyo’s latest moves on AI agents, M&A and buybacks come after a 30 day share price return of 13.53% and a 90 day share price return of 22.38%. However, the year to date share price return and 1 year total shareholder return are both still sharply negative, suggesting momentum has picked up recently while longer term holders remain under water.

If Klaviyo’s AI push has caught your attention, it can be useful to compare it with other smaller AI focused businesses by checking out the 68 profitable AI stocks that aren't just burning cash

The recent rebound in Klaviyo after fresh guidance, AI deals and buybacks raises a straightforward question. Is this just a catch up move for a still discounted stock, or has most of the easy upside already played out on valuation?

Most Popular Narrative: 34% Undervalued

Klaviyo’s most followed valuation narrative pegs fair value at $29.23, compared with the latest close of $19.30. This frames the recent rebound as only a partial catch up.

The rapid innovation and rollout of new AI first products including Conversational Agent, Helpdesk, and analytics expands Klaviyo's addressable market from just marketing automation into broader B2C CRM and customer service, setting up significant opportunities for higher ARPU and long term revenue growth.

It would be useful to see what kind of revenue curve and margin profile that product roadmap is built on. The narrative leans on faster top line growth, rising profitability and a rich future earnings multiple. It is worth exploring which assumptions have the biggest impact on that $29.23 figure.

Result: Fair Value of $29.23 (UNDERVALUED)

However, Klaviyo’s story could be knocked off course if AI products fail to gain traction or if reliance on partners like Shopify starts to work against it.

Next Steps

With Klaviyo’s mixed sentiment on growth, AI and partner reliance, it makes sense to check the full picture quickly and weigh both sides of the story using the 3 key rewards and 1 important warning sign

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.