Going long on this one as both a bounce play and earnings setup. The stock hit what looks like a floor around $26 and we're seeing it climb back up to about $27 at close.
Quick background - this is basically a one-stop financial app that handles everything from banking to loans to investment accounts. Pretty solid concept in today's market.
Here's why I'm betting on upside movement:
Their user base has been exploding lately. Last quarter they tacked on something like 850,000 new users, pushing total membership north of 11 million. That's some serious momentum.
They're also smart about expanding beyond just lending money. Now they're pulling in decent cash from their tech platform and other financial services. Plus they're rolling out crypto trading and some AI features which should help diversify income streams.
The numbers look pretty encouraging too:
Revenue progression this year has been solid - started at $772M in Q1, jumped to $855M in Q2, then hit $950M in Q3.
Their actual GAAP earnings have been climbing as well - $71M, then $97M, then $139.4M across those same quarters.
Management keeps bumping up their forecasts which usually indicates they're confident about what's coming.
Here's the kicker - the recent dip was mostly due to a share offering where major players like goldman and others were buying in. When institutional money moves in like that, it's usually a good sign.
The technical setup looks decent since it bounced off that $26 level and seems to have found some support there. With earnings dropping at month-end, I figure getting in near these lows gives me a good risk/reward ratio heading into the announcement.