Why Rezolve AI Stock Plummeted Today
Key Points
Rezolve published new sales guidance for 2025 and 2026 this morning.
The company's targets came in ahead of the average analyst estimates, but the sales guidance wasn't good enough for investors.
- 10 stocks we like better than Rezolve Ai Plc ›
Rezolve AI (NASDAQ: RZLV) sock got hit with big sell-offs in Tuesday's trading. The company's share price closed out the daily session down 9.2% amid the backdrop of a 0.2 decline for the S&P 500 and a 0.1% decline for the Nasdaq Composite.
Rezolve published new full-year guidance for 2025 and 2026 before the market opened this morning, and investors responded by selling out of the stock. The company's share price is now down roughly 53% from its one-year high.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
Rezolve's big updates weren't enough for investors
With the update that it published this morning, Rezolve said that it anticipated at least $40 million in revenue for 2025. The company's press release noted that its target came in above the analyst consensus.
The company also said that it was targeting roughly $350 million in sales for 2026 -- topping the average analyst estimate's call for sales of $170 million in the period. Management expects to close out this year with the business generating at least $500 million in annual recurring revenue (ARR). Rezolve announced that it reached $209 million in ARR in December and recorded its first profitable month of operations.
What's next for Rezolve?
Rezolve's downward stock move following what looks to be strong guidance highlights investor uncertainty surrounding the company and its scaling. While management reiterated its previous target for hitting $500 million in ARR this year, some investors were apparently hoping for a more detailed breakdown of the business outlook.
The company's valuation was actually gaining ground in pre-market trading today, but the big pullback that occurred after the market opened suggests that the stock continues to be a "show me" story for many investors. Even on the heels of today's valuation slide, the company has a market cap of approximately $1.2 billion and is valued at approximately 3.4 times management's sales target for this year. Shares could have substantial upside potential if the business can deliver margin improvements and hit that $350 million sales target, but the artificial intelligence (AI) software specialist still has a lot of proving to do.
Should you buy stock in Rezolve Ai Plc right now?
Before you buy stock in Rezolve Ai Plc, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rezolve Ai Plc wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $482,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,548!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 13, 2026.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
