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DAVE Stock Alert: 10 Things to Know as Fintech Dave Starts Trading Today

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·2 min read
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Banking app Dave begins trading today on the New York Stock Exchange under the ticker symbol DAVE.

The logo for Dave (DAVE) is displayed
The logo for Dave (DAVE) is displayed

Source: Ricky Of The World / Shutterstock.com

Dave is going public through a reverse merger executed via special purpose acquisition company (SPAC) VPC Impact Acquisition Holdings III. As it makes its public debut, Dave has been valued at approximately $4 billion and has attracted some notable early investors.

Here are 10 things that investors should know about Dave as the financial technology (fintech) company begins trading this morning.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

10 Things to Know as DAVE Stock Starts Trading

  1. Dave takes its name from the “David vs. Goliath” story where a small boy armed with a slingshot beats a giant in battle.

  2. The company claims to be a cheaper alternative to traditional banks and charges fewer fees to customers. It charges a $1-per-month fee that allows users to access checking accounts and up to $100 in overdraft protection. This “membership fee” is in place of other fees or interest.

  3. Customers can also improve their credit scores through reporting rent and utility payments to various credit bureaus.

  4. Dave claims to have helped customers avoid nearly $1 billion in overdraft fees, and helped gig workers earn more than $200 million from their side hustles. It does so through its job board, Side Hustle.

  5. An online-only bank that is run primarily through its online app, Dave claims to have more than 10 million members in the U.S.

  6. A prominent early investor in Dave has been Mark Cuban, the billionaire entrepreneur who owns the Dallas Mavericks and is featured on the television show Shark Tank.

  7. The largest investor in Dave has been Victory Park Capital, a global investment firm headquartered in Chicago and the parent company of the SPAC that Dave is merging with. Victory Park most recently injected $100 million into Dave in January 2021.

  8. Dave has said that it plans to use the $450 million raised through its market debut to make acquisitions, launch new products and invest in cryptocurrencies.

  9. The company is expected to post about $200 million in revenue this year (2022), up 60% year over year.

  10. Dave doesn’t expect to reach profitability for the next several years.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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