This drop is a joke. I don't see it as a bad sign, the market is relatively flat today so a 2% drop is far from ominous especially considering GDOTs recent price action. Grabbed some more at 16. Time to start scaling into your position if youv been waiting.
5-6 month chart looks very healthy. Big gains, followed by slight sell offs, followed by more big gains. Not much negativity surrounding the stock right now, good news will be huge news when it comes. GLTAL
Are you worried at all about Q1? Management kind of let out in presentations that Q1 could be weaker due to delayed tax refunds. Maybe that's already built into the stock. I think the big thing for Q1 will not be the numbers but the traction and guidance related to Go-Bank. Your analysis would be much appreciated. Thanks.
Its all about guidance these days. In the last year I've seen various companies in various sectors beat estimates by a long shot but not give extremely positive guidance and the price drops like a rock. If anything is wrong, GDOT will plummet come earnings. However, since GoBank is such a new thing (unlimited growth potential), there is the possibility that they bring us positive news and the price pops big time.
The way I see it, investors want two things from GDOT right now:
1 - Growth of GoBank specifically. If it turns out GoBank is not catching on like it should, PPS drops back to 12 atleast. If GoBank is growing, stock could shoot up to 20 pretty quickly.
2 - No loss of marketshare for prepaids. At this point, the prepaid debit card market is extremely competitive. However, last conference call, investors were pleasently surprised to learn that GDOT was holding its own in the battle for customers and the competition was not such a threat after all. This can easily change over the course of a quarter or two though. If GDOT says its losing market share in that market, the price will drop. Conversely, if GDOT reports better than expected conditions in that market, the price will soar. The likely possibility is that GDOT is holding their own and market share has neither risen nor fallen.
If investors get both of these things, we will see a pop. If investors see just GoBank improvement but not prepaid marketshare, I think the price will still move up. GoBank has the potential to be extremely lucrative whereas its hard to predict how prepaids will change much. Your right that GoBank will the determinant.