In the last few months, Dave’s stock has performed better than most Wall Street companies. It has increased by more than 3,300% since 2023 when it crashed to $6. This gives it a current market cap of $3.3 billion. Does Dave have more upside potential?
Technical analysis of Dave Stock Price
Weekly chart of the Dave shares shows it has been a roller coaster ride in recent months. Between July 2022 to early 2024, it remained in consolidation. The Wyckoff Theory accumulated this consolidation.
Then it moved to the phase of markup, which has a significantly higher demand than its supply. The range is still the same today. However, the trend has gained strength since the Average Directional Index (ADX), which now stands at 54, has increased. A trend will usually strengthen if the ADX is above 20.
Relative Strength Index has stayed above the overbought extreme level of 81. The MACD and Stochastic indicators continue to soar.
The stock is also moving towards the Fibonacci 50% Retracement Level at $250. This indicates that momentum will continue.
The stock will continue to rise as the bulls aim for the next major resistance level of $300, which is up 20% on the current price. Bullish views will be invalidated if the stock price drops below $200.
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The Dave Share Price is Surging
Dave Inc., a fintech startup that is growing fast, offers banking services to customers who live paycheck-to-paycheck. ExtraCash is its most popular product, offering a zero-interest overdraft.
The cost of its overdraft is much lower than that charged by other companies. The cost is about $5 – much less than the $35 average in the US. The company has no minimum balance, and there are zero fees for maintenance.
Dave Checking is a checking account that can be opened through one of its partners. The company also provides personal financial solutions such as budgets and side jobs.
Dave’s continued growth in recent years. Its annual revenue rose from $121 million to $347 million.
The company is now in the black, as its loss has dropped from $128,000,000 in 2022, to only $48,000,000 in 2023. The company made a profit last year of more than $57.8 millions.
Analysts were surprised by the latest results, which showed that revenue for the quarter increased 47% from $108 to $108 millions. The ExtraCash volume of originations grew by 46%.
Analysts believe that there is still room for growth. Average second-quarter revenues are estimated at $112,8 million and up 40% over last year.
It is estimated that the company’s revenue in 2018 will be $468 millions, and then $551 million by 2026. The management of the company estimates revenue between $460 and $475 millions.
Dave will also be expected to become more profitable. Management increased its adjusted EBITDA to $155m or $165m from between $110m and $12m. Real EBITDA will probably be higher than estimated figures because management tends to be highly conservative.
Top Dave’s metrics have been moving in the direction of success, as the ARPU (average revenue per user) has jumped by 29% to $171 in the past quarter.
However, the main risk is that Dave’s stock is overvalued. Its forward P/E is 40 which is much higher than sector median 11. There is also a possibility that the stock could enter the Wyckoff markdown stage.
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The post Dave Stock Price: What’s next after the 3300% increase? This post may change as new information unfolds
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