We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cardlytics (CDLX - Free Report) is a Zacks Rank #5 (Strong Sell) that is an advertising platform in banks digital channels. Through purchasing data, Cardlytics can see where and when customers buy both online and in a store. From that, they identify opportunities that target people within their bank.
The stock has seen a serious drop as of late because of a poor earnings report earlier in the month. Additionally, the stock has been damaged technically, so investors looking to buy the dip might want to hold off until the chart looks better.
More about CDLX
Cardlytics was founded in 2008 and is headquartered in Atlanta, Georgia. The company employs over 600 people and has a market cap of about $3 billion. The stock has Zacks Style Scores of “F” in Value and Growth, as well as “D” in momentum.
Q2 Earnings and Guide
In early August, the company reported an EPS miss of 11%. While the company saw year over year revenues that more than doubled, they guided Q3 revenues below expectations. The CEO had some comments that blamed an uneven recovery in Q3 for the guide and expects macroeconomic challenges.
The stock did not react well, gapping lower and falling from the $120 level to $85. Since earnings, the stock has chopped in the mid $80s and is now back above $90.
The guide lower forced analyst to start dropping their estimates. For the current quarter, numbers dropped over the last 30 days from -$0.25 to -$0.50, or 100%. For the current year, estimates have dropped from a loss of 95 cents to an expected loss of $1.50.
The Technicals
The stock found post-earnings support at the $80 area. This was where it traded late in 2020 before it broke out earlier this year, essentially doubling in value.
Now the bulls are trying to repair the damage done, recently rallying over the $90 level. However, the 21-day moving average at $91 could see resistance. Above that, $110 is the 50-day and $120 is the 200-day.
Traders should look to sell into these resistance levels as the fundamental story is damaged at the moment.
In Summary
Cardlytics is starting to rally, but the bulls will be limited in what they can do until the next quarter. If the company can beat expectations, then perhaps the stock’s momentum can return. Until then, investors should avoid and look elsewhere.
For those interested in the business service space, Marvell Technology (MRVL) might be a better bet. This company is seeing estimates trend higher for the current year and is a Zacks Rank #2 (Buy).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Bear of the Day: Cardlytics (CDLX)
Cardlytics (CDLX - Free Report) is a Zacks Rank #5 (Strong Sell) that is an advertising platform in banks digital channels. Through purchasing data, Cardlytics can see where and when customers buy both online and in a store. From that, they identify opportunities that target people within their bank.
The stock has seen a serious drop as of late because of a poor earnings report earlier in the month. Additionally, the stock has been damaged technically, so investors looking to buy the dip might want to hold off until the chart looks better.
More about CDLX
Cardlytics was founded in 2008 and is headquartered in Atlanta, Georgia. The company employs over 600 people and has a market cap of about $3 billion. The stock has Zacks Style Scores of “F” in Value and Growth, as well as “D” in momentum.
Q2 Earnings and Guide
In early August, the company reported an EPS miss of 11%. While the company saw year over year revenues that more than doubled, they guided Q3 revenues below expectations. The CEO had some comments that blamed an uneven recovery in Q3 for the guide and expects macroeconomic challenges.
The stock did not react well, gapping lower and falling from the $120 level to $85. Since earnings, the stock has chopped in the mid $80s and is now back above $90.
Cardlytics, Inc. Price and EPS Surprise
Cardlytics, Inc. price-eps-surprise | Cardlytics, Inc. Quote
Estimates
The guide lower forced analyst to start dropping their estimates. For the current quarter, numbers dropped over the last 30 days from -$0.25 to -$0.50, or 100%. For the current year, estimates have dropped from a loss of 95 cents to an expected loss of $1.50.
The Technicals
The stock found post-earnings support at the $80 area. This was where it traded late in 2020 before it broke out earlier this year, essentially doubling in value.
Now the bulls are trying to repair the damage done, recently rallying over the $90 level. However, the 21-day moving average at $91 could see resistance. Above that, $110 is the 50-day and $120 is the 200-day.
Traders should look to sell into these resistance levels as the fundamental story is damaged at the moment.
In Summary
Cardlytics is starting to rally, but the bulls will be limited in what they can do until the next quarter. If the company can beat expectations, then perhaps the stock’s momentum can return. Until then, investors should avoid and look elsewhere.
For those interested in the business service space, Marvell Technology (MRVL) might be a better bet. This company is seeing estimates trend higher for the current year and is a Zacks Rank #2 (Buy).