Dave Inc. (NASDAQ: DAVE) is a fintech company looking to improve the financial health of its users through its suite of products. While DAVE stock lost more than 92% of its value since its SPAC listing back in January, many investors are bullish the stock could be poised for a rebound thanks to the company’s services and products. Meanwhile, some investors are speculating DAVE stock could be a potential short squeeze candidate following the stock’s recent 50% run. With the company preparing to release its Q2 financials next week, DAVE stock could be one to watch in anticipation.
DAVE Stock News
As the company is aiming to help its members improve their financial health, DAVE provides users with a suite of innovative financial products to allow them to achieve this target. Through its Insights budgeting tool, DAVE assists members with managing their budgets. This allows members to manage their income and expenses between paychecks in a smarter way and avoid liquidity issues that could cause them to overdraft.
DAVE’s app also helps its members improve their income by offering new job opportunities to them through its Side Hustle service. To facilitate this, DAVE is in partnerships with leading employers so that members could quickly submit their applications to improve their financial health. With this in mind, the Side Hustle product helped members generate more than $157 million since its launch in 2018.
At the same time, DAVE invented a free overdraft and short-term credit alternative – Extra Cash – that allows members to advance up to $500 to their account and avoid fees. Since many Americans rely on overdraft to maintain a positive balance between paychecks, DAVE’s revolutionary product has been successful in attracting new users to the company’s banking app. With this in mind, the Extra Cash product attracted several financial backers to the company including Mark Cuban, The Kraft Group, and Norwest. In light of this, DAVE stock could be poised for major growth in the future since the company is backed by institutions and celebrities of this caliber.
Meanwhile, DAVE offers a full-service digital checking account through its partnership with Evolve Bank and Trust where members can access these accounts for a $1 monthly membership fee. In this way, members can access these accounts in addition to receiving automated budgeting and the ability to build up their credit scores by reporting rent and utility payments to credit bureaus. Through all of these products, DAVE is one of the most popular fintech apps – attracting more than 11 million users since its launch in 2017. Considering this major growth in such a little time, DAVE stock is emerging as an intriguing play in the highly competitive fintech market.
Looking to increase its offerings, DAVE entered into a strategic partnership with West Realm Shires Services, Inc – the owner and operator of FTX US – where both companies will work to expand the digital assets ecosystem. Through this partnership, DAVE’s members will be able to create accounts with FTX to place and settle orders for eligible cryptocurrencies using the DAVE app with FTX acting as DAVE’s exclusive crypto services provider. In light of this partnership, DAVE could be on track to further increase its members since it would be appealing to the several crypto enthusiasts.
Moreover, DAVE received $100 million in funding from FTX ventures after entering into a convertible note purchase agreement where DAVE could issue 10 million shares to FTX ventures for $10 per share. With this funding secured, DAVE intends to pursue growth opportunities and invest in future initiatives – including crypto-related initiatives. In light of this new focus on expanding in the crypto space, DAVE stock could be a bargain at its current PPS.
Despite the company’s growing business and its pursuit of additional growth opportunities, DAVE stock is gaining momentum as a potential short squeeze play among Reddit and Fintwit investors. While DAVE’s short interest rate is only 5.5%, the stock has a considerably high dark pool short interest of 54.8% according to Fintel data. With the company planning to release its Q2 financials on August 11, DAVE stock could be one to watch closely this month to see whether a short squeeze occurs or not.
DAVE Stock Financials
According to its Q1 financials, DAVE has $387.7 million in assets including $23.5 million in cash and $278.2 million in marketable securities which could be liquidated to cash quickly. In terms of liabilities, DAVE reported $213.3 million with only $58.7 million in current liabilities. As a result, DAVE appears to be in a strong position financially since it is able to cover all of its current liabilities. As for revenues, the company reported $42.5 million. However, these revenues were offset with DAVE’s operating costs of $65.2 million – leading to a $34.8 million net loss.
@HawkHoldings saw DAVE stock’s potential to surge before the stock’s 50% run.
Shout out to @Noted_Thanks_ for sharing his in-depth DD on DAVE stock.
DAVE stock is currently trading at $.69 and has supports at .6679 and .5559. The stock also shows resistances near .7293, .88, and 1.004. With the stock gaining traction as a potential short squeeze candidate, DAVE stock recently climbed more than 50% overnight. While DAVE lost some of its momentum, the company’s Q2 earnings could be a catalyst to watch as the stock could rally on a positive earnings report.
In the meantime, DAVE stock is trading below its VWAP and MAs which could be a bearish signal for a drop to retest its support. In that case, this could be a good entry point for bullish investors given that DAVE stock is trading near its bottom.
Accumulation is trending downwards since DAVE’s run near $1 and the MACD is bearish. The RSI is currently holding at 47 indicating that the stock could witness a strong movement in either direction if there is high volume. As is, DAVE has an OS of 325.3 million and a float of 266.6 million.
DAVE Stock Forecast
With more than 11 million users, DAVE is emerging as a major player in the fintech space through its products. Through these products, DAVE has been receiving interest from the likes of Mark Cuban, The Kraft Group, and Norwest who are invested in the company. In this way, many investors are bullish DAVE stock could turn profitable in the long-term. Despite the company’s growth potential in the fintech industry, DAVE stock is emerging as one of the Reddit short squeeze plays since the stock is witnessing a high dark pool short interest rate. While the possibility for a short squeeze to occur remains speculation, DAVE stock could soar if the company continues growing financially in its upcoming Q2 earnings report on August 11.
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