Important note

This AI stock analysis for NerdWallet 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!

NerdWallet - AI Stock Analysis

Analysis generated February 24, 2024

NerdWallet is a personal finance company that aims to provide clarity for all of life's financial decisions. The company offers tools and advice to help consumers understand their options related to credit cards, mortgages, insurance, and more. These services are anchored in NerdWallet's website and mobile app, which house a wealth of articles, calculators, and comparison features designed to aid consumers in financial decision-making.

Fundamental Analysis

The latest financial figures for NerdWallet indicate areas that require attention. Revenue in the last quarter was $134M, reflecting a 12.52% quarter-over-quarter decrease and a 5.18% year-over-year decrease. These declines signal potential issues in revenue generation or market conditions that may be impacting the business. Net income has also decreased dramatically; the last quarter's figure was $2.3M, which is a 360.00% decrease from the previous quarter and a 125.84% decrease from the same quarter last year. EBITDA at $4.6M also follows this negative trend, with a 6.12% quarter-over-quarter decrease and a 65.67% year-over-year decrease. The high current P/E ratio of 816 could be a warning signal of overvaluation and warrants cautious scrutiny.

Technical Analysis

The stock is currently trading at $16.61, up 9.13% from a month ago, indicating a positive short-term trend. Nevertheless, the year-over-year decrease of 15.94% could raise long-term performance concerns. The upward movement in the SMA10 from 16.10 to 16.24 suggests a continued positive trajectory. The RSI stands at 35.7, which denotes a neutral market sentiment and does not indicate overbought or oversold conditions.

Alternative Data Analysis

An increase in job postings by 14% suggests that NerdWallet is looking to expand, possibly in an effort to drive growth or enter new markets. The business's outlook is also positive, showing a 7% upward trend in the past few months. These figures, combined with a 42% increase in web visitors to 49 million and a 37% increase in daily app downloads, totaling around 2,300, highlight a positive trajectory in customer acquisition and engagement. Although Twitter followers have remained static, a 7% increase in Instagram followers to 120,000 also indicates growing public interest in the brand.

Conclusion and Stock Analysis Recommendation

In conclusion, NerdWallet faces significant challenges reflected in its fundamental financial performance with worrisome declines in revenue, net income, and EBITDA. Such indicators, combined with a very high P/E ratio, suggest that the stock may be overvalued and that investors should proceed with caution. However, the company's strong performance in alternative data metrics provides a more positive outlook. The growth in site visits, app downloads, job postings, and online followers point towards a solid strategic direction focused on expansion and customer engagement.

Based on the mixed findings from the fundamental and alternative data analyses, a neutral-to-cautious recommendation appears prudent for prospective investors. Those with a risk-averse profile may seek to avoid the stock until fundamentals improve, whereas those with a higher risk tolerance might find the growth indicators from alternative data promising enough to consider a speculative position, closely monitored for signs of fundamental improvements to support the bullish alternative data trends. As always, investors should consider their investment profile and risk tolerance and keep in mind that past performance is not indicative of future results.

The analytics provided are estimates and not a substitute for professional advice. All investments involve risks, including possible capital loss.
About Us

AltIndex revolutionizes investing with advanced alternative data analytics, smart insights, and stock alerts, presented in an easy-to-use dashboard powered by comprehensive company data from across the internet.

Legal Disclaimer
The information provided by AltIndex is solely for informational purposes and not a substitute for professional financial advice. Investing in financial markets carries inherent risks, and past performance doesn't guarantee future results. It's crucial to do your research, consult with financial experts, and align your financial objectives and risk tolerance before investing. AltIndex creators and operators are not liable for any financial losses incurred from using this information. Users should exercise caution, seek professional advice, and be prepared for the risks involved in trading and investing in financial assets, only investing what they can afford to lose. The information in this application, derived from publicly available data, is believed to be reliable but may not always be accurate or current. Users should verify information independently and not solely rely on this application for financial decisions. By using AltIndex, you acknowledge that it doesn't offer financial advice and agree to consult a qualified financial advisor before making investment decisions.

© 2024 AltIndex. All rights reserved.