Small-Cap Lender ‘Dave’ Is Spewing Cash And Shareholder Rewards
Date
12/19/2024 3:19:49 PM
(MENAFN- Yolo Wire) Digital %Banking service Dave (NASDAQ: $DAVE) is a small-cap stock that is delivering gigantic returns to its shareholders.
Founded in 2016, Dave is an online bank that focuses on providing short-term loans, mostly cash advances, to consumers. The company also has a service for finding people work called “SideHustle.”
Dave is unique in that its doesn’t charge interest or origination fees. Instead, the company charges users a monthly service fee and provides an option to “tip” the company.
Dave got a break when investor and Shark Tank personality Mark Cuban led a $3 million U.S. investment round in the company. Since then, Dave has received more than $180 million U.S. in venture funding.
The company went public on the Nasdaq exchange via a special purpose acquisition company (SPAC) on Jan. 6, 2022.
Today, Dave has a market capitalization of $1.14 billion U.S., making it small-cap stock defined as any security that trades for less than $5 billion U.S. to $10 billion U.S.
As the company’s user base has swelled to more than 10 million app downloads, its stock has soared.
So far in 2024, Dave’s stock has risen a mindboggling 940%, crushing just about every other security listed on the Nasdaq exchange.
At the start of 2024, Dave’s stock was trading at less than $8 U.S. per share. It peaked in early December at nearly $110 U.S. a share.
While the returns have been phenomenal, Dave’s stock is prone to volatility and might not be for the faint of heart.
Still, many analysts remain bullish on Dave’s stock and its prospects. The company has been named one of the next billion-dollar start-ups by Forbes magazine.
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