PagerDuty’s stock tumbled seven percent after Morgan Stanley downgraded them, calling their AI readiness “bottom-tier” — citing weak defenses against new AI-driven competitors and outdated pricing models. Analysts warn of shrinking revenue and user growth, while the company’s already cratered 24% this year and lost nearly all its value since last fall. In a fast-changing AI landscape, PagerDuty’s struggle is a stark reminder: adapt or get left behind.
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