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Cardlytics - AI Stock Analysis
Analysis generated April 4, 2025
Cardlytics, Inc. (CDLX) operates a purchase intelligence platform that helps marketers to understand consumer spending patterns. By partnering with financial institutions, Cardlytics provides insights from anonymized transaction data to deliver targeted marketing campaigns. This data-driven approach is designed to improve return on marketing investment for brands and increase customer engagement for financial institutions. Despite its innovative model, Cardlytics faces significant challenges in maintaining growth and profitability.
Fundamental Analysis
From a fundamental perspective, Cardlytics has experienced a troubling decline in performance. Revenue for the last quarter was $67M, representing a decrease of 3.70% compared to the previous quarter and a decrease of 15.12% compared to the same quarter last year. Declining revenues are often a red flag for investors, as they suggest potential issues with the company's core business operations.
Net income showed a dramatic downturn, with a last quarter figure of $145M, representing a decrease of 3,310.43% compared to the previous quarter and a decrease of 505.78% compared to the same quarter last year. Such negative shifts can raise alarm about the company's ability to manage its expenses and maintain profitability.
EBITDA for the last quarter was $142M, reflecting a staggering decrease of 1,425.11% compared to the preceding quarter and a decrease of 731.04% year-over-year. This sharp decline in EBITDA points to potential issues in the company’s operational efficiency and earnings capacity.
Moreover, the insider selling of stocks within the company in recent months serves as a bearish indicator, suggesting that those within the company may lack confidence in its short-term performance.
Technical Analysis
Cardlytics' stock is currently priced at $1.43. This represents a sharp decrease of 41.39% compared to a month ago and a massive 89.54% drop compared to the same time last year. The pronounced decline in stock price indicates significant downward pressure and investor concern.
The Simple Moving Average (SMA) for the last 10 days (SMA10) is currently 1.81, down from a previous SMA10 of 1.89, signaling a potential further decline in price. Additionally, the Relative Strength Index (RSI) stands at 36.6, which falls into the neutral category but is edging close to the oversold territory, potentially indicating that the stock could face more downward pressure.
Alternative Data Analysis
Examining alternative data provides additional insight into Cardlytics' health and future performance. The company currently has 13 open job positions, down by 48% over the past couple of months. A reduction in job openings can indicate efforts to cut costs, which is not a positive sign for a company looking to grow.
On the customer acquisition front, Cardlytics’ web page had an estimated 660,000 visitors recently, down by 32% over the last few months. Declining web traffic can indicate waning interest and potential loss of customers, which can adversely impact future revenue.
Regarding customer engagement, Cardlytics has 1,300 followers on Instagram, with no new followers in the past couple of months. Similarly, their Twitter page has 2,700 followers, with no significant changes in follower count recently. Declining or stagnant social media engagement suggests that the company may struggle with maintaining or growing its customer base.
Additionally, AltIndex’s AI score presents a dire picture for Cardlytics with a score of 21, signalling a strong sell recommendation based on a broad analysis of fundamental, technical, and alternative data.
Conclusion and Recommendation
In conclusion, Cardlytics is currently facing significant challenges across multiple fronts. From a fundamental perspective, declining revenues, net income, and EBITDA raise serious concerns about the company’s financial health and operational efficiency. Technically, persistent bearish trends and a plummeting stock price indicate considerable investor apprehension.
Alternative data further substantiates these concerns, highlighted by reduced job postings, declining web traffic, and stagnant social media engagement. The cumulative effect of these indicators, coupled with a strong sell signal from AltIndex’s AI score, suggests that Cardlytics is currently a high-risk investment.
Potential investors may want to consider these factors carefully before making any decisions. Based on the available data, a cautious or sell stance on Cardlytics' stock may be warranted.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
