102.99 0.00 (0.00%)
After hours: 4:15PM EST
|Bid||102.97 x 1100|
|Ask||104.06 x 1100|
|Day's Range||102.87 - 106.67|
|52 Week Range||14.14 - 107.50|
|Beta (5Y Monthly)||1.63|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
In his "Homework" segment of Mad Money Thursday night, Jim Cramer followed up on a stock that had stumped him during earlier shows. Shares of CDLX are up 173% in just the past six months and trade at an astronomical 107 times earnings. Given the company has small earnings, Cramer also considered valuing the company based on revenues.
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One technology stock that deserves your attention, given its explosive gains over the past year and its huge potential in the long run, is Cardlytics (NASDAQ:CDLX) stock. At its core, this is a payment card analytics company, which leverages credit and debit card data to pair marketers with consumers and power relevant and strong bank loyalty and rewards programs.This business model is taking off. When Cardlytics hit the public markets back in early 2018, the company had only partnered with one major bank, Bank of America (NYSE:BAC), and had just 50 million active users. Today, Cardlytics has partnerships with JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC), too, and is approaching 150 million monthly active users, meaning that Cardlytics now has purchase data on essentially one out of every two card swipes in the U.S.That's a lot of data. And there's a lot of value in that data. As such, it should not be surprise that as Cardlytics has grown from 50 million users at its IPO to nearly 150 million users today, CDLX stock has roared from a $13 IPO price, to a $87 price tag -- while $90 earlier -- today.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut, on the heels of such an enormous rally over the past two years, does CDLX stock have any more upside left?In the near-term, probably not. The valuation seems maxed out. But, in the long run, yes. Cardlytics is in the early stages of a huge multi-year growth narrative. Over the next few years, as this growth narrative plays out, CDLX stock will only go higher. Tons of Data From Billions of SwipesCardlytics stock has all the attributes of a long-term winner.The core of the Cardlytics business model is all about unlocking value in the vast world of credit and debit card purchase data. That is, banks around the globe have collectively issued billions of payment cards, and those billions of payment cards are used several times each year. Consequently, in any given year, banks are collectively producing billions upon billions of consumer purchase data points. * 9 Up-and-Coming Small-Cap Stocks to Watch So, Cardlytics created a platform aimed at tapping into that enormous payment card database. Their angle? Loyalty and rewards programs.The process is simple. Partner with banks. Gain access to all that data. Use that data to work with marketers to create highly personalized and tailored loyalty and rewards programs for the banks. Banks get increased customer spending. Marketers get increased product awareness and sales. Cardlytics gets a fee for setting it all up.Sounds genius to me. It's also sustainable, because in data businesses, scale matters. The bigger Cardlytics gets, the more data it has, and the better loyalty programs it can build. So, as more and more banks migrate to this data-driven loyalty program model, they will trust the biggest player, Cardlytics, to do the best job.Further, Cardlytics is primed for big growth because they only have 150 million monthly active users, and there are over a billion payment cards in the world. Even further, this is a relatively high-margin business with a lot of fixed costs, so sustained big revenue and user growth will inevitably drive positive operating leverage and result in huge profits. Cardlytics Stock is Maxed OutAlthough CDLX stock is a long term winner, a lot of that long term winning has already been done in the past year, with shares up 400% over that stretch. Going forward, near term upside in CDLX stock may be relatively muted by valuation friction.As is obvious, I'm bullish on Cardlytics' long-term growth prospects. My long-term model on the company reflects this bullishness. I assume that the company can sustain robust double-digit user growth for the next several years, thanks to increased U.S. penetration and some international expansion. I further assume that average revenue per user will trend higher, too, and that revenue growth will remain steadily north of 20% for the next few years.Other critical assumptions include relatively slow expense growth in the 10% to 15% per year range, sustained margin expansion, and significant profitability ramp into 2025.But, even under all those bullish assumptions, I still have a hard time justifying the CDLX stock price today.My long-term model pegs Cardlytics' earnings per share at $3.50 by 2025. Based on an 35x forward earnings multiple -- which is a medium-term average for application software stocks -- and a 10% annual discount rate, that implies a 2020 price target for CDLX stock of about $85. * The Top 5 Dow Jones Stocks to Buy for 2020 That's roughly where shares trade hands today. So, relative to the company's long-term profit growth prospects, Cardlytics stock is fully valued in the near term. Smart Company, Doing Smart ThingsI like Cardlytics. This is a smart company, doing smart things, with a ton of growth momentum, a long runway ahead to sustain that momentum, and a favorable financial profile that lends itself to robust long term profit growth potential. For all intents and purposes, CDLX stock is a long-term winner.But, shares have come very far, very fast, and appear fully valued in the near term. So, it's probably best not to chase this rally. Instead, wait for the stock to cool off. Wait for the inevitable hiccup and dip. Then, buy that dip.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Stocks That Cautious Investors Should Sell Now * 7 Healthcare Stocks With 100% Street Support * 3 Chinese Stocks to Buy, Sell, or Play from Either Side The post Cardlytics Stock is a Winner, but Beware Valuation Risks appeared first on InvestorPlace.
Swing trading usually focuses on small gains, but you need rules for larger gain that come your way. Like Cardyltics stock bursting more than 20% in a day.
Cardlytics, Inc. (CDLX) has been upgraded to a Zacks Rank 2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
We can readily understand why investors are attracted to unprofitable companies. For example, Cardlytics (NASDAQ:CDLX...
Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 750 active prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile […]
Cardlytics, Inc. (CDLX) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
Cardlytics, Inc. (CDLX) delivered earnings and revenue surprises of 120.00% and 13.89%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really...
Cardlytics, Inc. (CDLX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
CEO of Cardlytics Inc (30-Year Financial, Insider Trades) Scott D. Grimes (insider trades) sold 250,000 shares of CDLX on 09/13/2019 at an average price of $32.3 a share. Continue reading...
Cardlytics' initial idea was simple: Marry credit card purchase data with marketers, and build a new data-based business for banks.
(Bloomberg) -- JPMorgan Chase & Co. is planning to shut down its Chase Pay app in the bank’s third reversal on digital offerings in three months.The company started informing customers Wednesday that they’ll no longer be able to use the product to pay with their smartphones when shopping in stores starting early next year, according to an email seen by Bloomberg. They’ll still be able to use Chase Pay on the websites and apps of retailers that accept it.It’s an about-face on a product introduced four years ago to compete with rivals such as Apple Inc. that are working to transform how consumers pay for products and services. New technologies have spurred a revolution in mobile payments, with Chinese companies leading the way in helping consumers bypass credit and debit cards. The U.S. market has been slower to develop.“When we started this, it was four years ago -- the payment space has changed a lot over the period of time and customer behavior has changed,” Eric Connolly, head of Chase Pay, said in an interview. “A lot of merchants have shifted to ‘buy online, pick up in store’ and have invested in their online presence and their apps.”The bank says it wants to capture a larger share of a market long dominated by PayPal Holdings Inc., whose digital wallet was accepted by about 70% of online merchants at the end of the second quarter. Fewer than 1% accepted JPMorgan’s, according to a study by industry publication PYMNTS.com.Pablo Rodriguez, a JPMorgan spokesman, declined to say how many online retailers currently accept Chase Pay, adding that the bank expects that number to increase. In a statement on Wednesday, the company said that GrubHub Inc. will soon accept it.Shares of the bank, which have climbed 11% this year, advanced 0.8% to $108.16 at 9:33 a.m. in New York.Finn, On DeckJPMorgan has shown a greater willingness than rivals to cut bait on unsuccessful projects as it spends more than $11 billion on technology initiatives designed in part to position the bank to stay ahead of changes in how consumers spend money.Some of the bank’s other digital experiments have failed to take hold. In June, it shut down digital bank Finn a year after rolling out the brand nationally. A month later, it cut ties with fintech company On Deck, whose technology platform it had used to originate online small-business loans.JPMorgan has been testing other technologies to lure consumers to spend more on its cards. It has been adding tap-to-pay technology to its cards and joined with Cardlytics Inc. to offer coupons for select merchants inside its mobile app. In February, it unveiled a prototype cryptocurrency, dubbed JPM Coin, that it plans to use to speed up payments between companies.(Updates with JPMorgan’s digital experiments starting in seventh paragraph.)To contact the reporters on this story: Michelle F. Davis in New York at firstname.lastname@example.org;Jenny Surane in New York at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Steve Dickson, Daniel TaubFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.