UBS analysts cut Ionos SE stock to a neutral rating from buy, slashing the price target to €28 from €40. This follows a 40% stock plunge since August amid fears AI-powered website builders could render its core business obsolete. The brokerage cited persistent concerns over AI disruption and expectations for softer near-term revenue growth.

IONOS has issued two recent revenue downgrades as growth slows into Q4 2025, with analysts predicting a deceleration to 4.2% from 7.4% in the previous quarter. Cloud business growth is also expected to slow significantly. UBS trimmed 2026 EPS estimates by 2% to €1.83 and cut long-term growth projections deeply due to compounding effects of lower annual growth assumptions.

Competitors GoDaddy and WIX have seen their multiples halve on similar AI disruption fears. IONOS currently trades at 13.9x 2026 EPS, a modest premium to peers but at a discount to European internet peers. Investor sentiment is polarized, with debate continuing over whether IONOS represents an AI winner or a loser facing obsolescence. The downgrade highlights the growing threat of AI to traditional web hosting models.