PTRN: Jefferies Warns of Margin Pressure and AI Disruption for Internet Equities in 2026

Pattern Group Inc. (NASDAQ:PTRN) is one of the best low priced technology stocks to buy according to analysts. On December 11, Jefferies lowered the firm’s price target on Pattern Group to $20 from $21 with a Buy rating on the shares. The firm’s 2026 outlook suggests being highly selective with Internet equities. Jefferies cites two main headwinds: rising costs that could stall margin growth, and fears that AI will cut out the middleman, making investors less willing to pay a premium for these stocks.

Additionally, on December 3, Pattern Group Inc. (NASDAQ:PTRN) announced its acquisition of ROI Hunter, which is a performance-driven retail media platform. ROI Hunter specializes in integrating marketing, product, and merchandising data to facilitate SKU-level advertising decisions. This acquisition is designed to support Pattern Group’s AI-driven capabilities across major walled-garden platforms, specifically Google, Meta, and Snap, by providing a unified source of truth for global brands.

The acquisition follows a strong financial period for Pattern Group, where the company reported revenue of $639.7 million in Q3 2025, which was a 46% increase over the previous year. A key driver of this performance was a record NRR of 122%, indicating significant organic growth from existing brand partners compared to 113% in the same period last year. Looking ahead to Q4 2025, Pattern Group expects continued growth with revenue projected between $680 million and $700 million.

Pattern Group Inc. (NASDAQ:PTRN) accelerates various brands on e-commerce marketplaces using proprietary technology and AI.

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Disclosure: None. This article is originally published at Insider Monkey.