Important note

This AI stock analysis for MoneyLion is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

MoneyLion - AI Stock Analysis

Analysis generated August 26, 2024

MoneyLion Inc. is a digital financial platform that offers a suite of products and services including personal loans, banking, and investing solutions. The company aims to empower consumers by providing access to better financial tools and personalized advice. Founded in 2013, MoneyLion has carved a niche in the fintech industry with a mission to rewire the American banking system and help consumers manage their finances more effectively.

Fundamental Analysis

MoneyLion's revenue for the last quarter was $131 million, marking an increase of 8.13% compared to the previous quarter. This is a positive indicator of short-term growth. Compared to the same quarter last year, the revenue has increased by 22.81%, highlighting robust year-over-year growth.

Net income for the last quarter stood at $3.1 million, a sharp 55.66% decrease compared to the prior quarter. However, it shows a dramatic year-over-year improvement of 111.32%, suggesting positive long-term growth despite recent setbacks.

EBITDA for the last quarter was reported at $14 million, a decrease of 27.17% from the previous quarter. Nevertheless, it showcases a substantial year-over-year growth of 202.43%, demonstrating enhanced operational efficiency over the long term.

The company’s current Price-to-Earnings (P/E) ratio is 160.44, suggesting potential overvaluation. Typically, a high P/E ratio indicates that the stock might be overpriced relative to its earnings, generally leading to a bearish outlook.

Notably, there have been a couple of insider sales in the last few months, which can also be interpreted as a bearish signal.

Technical Analysis

Today's stock price is $43.32, representing a decline of 38.32% over the past month, which may be concerning in the short term. However, compared to a year ago, the stock price has surged by 136.85%, indicating a positive long-term trend.

Currently, the trend appears bearish. The Simple Moving Average (SMA10) is at $43.41, down from the previous SMA10 of $43.55, hinting at potential downward movement in the near future. Additionally, the Relative Strength Index (RSI) is at 58.7, indicating neutral conditions. Neither overbought nor oversold, the RSI does not signal an immediate trend reversal.

Alternative Data Analysis

From an alternative data standpoint, MoneyLion currently has 51 open job positions, down by 9% in recent months. This might indicate efforts to cut costs or improve margins, which is not a great sign for a growing company. Employee sentiment toward the business outlook remains neutral.

On the customer acquisition front, the company has around 1.6 million visitors on their webpage, with no significant changes over the past couple of months. In terms of customer engagement, MoneyLion has 110,000 Instagram followers, up by 10% recently, and 43,000 Twitter followers, up by 4%. This increased interest is a positive sign for the company.

The AI score from AltIndex, which integrates fundamental, technical, and alternative data analysis, is at 71, signifying a buy signal.

Conclusion and Recommendation

MoneyLion shows strong year-over-year growth in revenue, net income, and EBITDA, though recent quarter-over-quarter declines warrant caution. The stock's high P/E ratio suggests potential overvaluation. From a technical perspective, the stock has shown a significant drop in the past month but remains robust over the past year, presenting a mixed outlook. Alternative data shows a stable but not growing user base, with signs of increased customer engagement on social media.

Despite the concerning short-term trends, the substantial year-over-year growth and the AI buy signal suggest that MoneyLion holds promise for long-term investors willing to accept short-term volatility. Therefore, the recommendation is to "Hold" for existing investors and "Buy" for those looking for a long-term investment opportunity.

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.