Last Updated: 08 Nov 2024
Executive Summary
Cardlytics Inc. (CDLX) is a technology company that operates an advertising platform within financial institutions' digital channels. Its market capitalization is $259.67 million, and the latest stock price is $4.07. The company has a negative EBITDA of -$33.02 million and a trailing EPS of -$3.14. Analysts have a Hold rating on the stock, with a target price of $4.3.
Company Overview
Cardlytics Inc. is headquartered in Atlanta, Georgia, and operates in the United States and the United Kingdom. The company's platform allows advertisers to target consumers based on their spending habits. Cardlytics has partnerships with over 1,500 financial institutions, including Bank of America, Chase, and Wells Fargo.
Fundamental Analysis
Cardlytics Inc.'s financial performance has been mixed in recent quarters. Revenue declined by 9.2% year-over-year in the latest quarter, and the company reported a net loss of $33.02 million. The company's gross profit margin has also been declining, from 41.1% in 2021 to 37.8% in the latest quarter.
Cardlytics Inc.'s balance sheet is relatively strong. The company has $135.4 million in cash and equivalents and no long-term debt. However, the company's accounts receivable have been increasing, which could be a sign of potential credit risk.
Technical Analysis
Cardlytics Inc.'s stock price has been in a downtrend since early 2022. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for Cardlytics Inc. is uncertain. The company's financial performance has been mixed, and the stock price is in a downtrend. However, the company's balance sheet is strong, and the stock is trading at a discount to its analyst target price.
Long Term Outlook
The long-term outlook for Cardlytics Inc. is more positive. The company's platform has the potential to be a major player in the digital advertising market. Cardlytics has a strong track record of innovation, and the company is well-positioned to benefit from the growing trend of digital advertising.
Analyst Recommendations
Analysts have a Hold rating on Cardlytics Inc., with a target price of $4.3. The consensus price target implies a potential upside of 6.1% from the current stock price.
