Cardlytics: (Kitchen) Sinking
Now, After Earnings and Violent Volatility, Where Are We?
This is an after-earnings follow-up for my pre-earnings CDLX 0.00%↑ article:
I wanted to express my positive views before earnings - to avoid hindsight bias in case the stock ran further. However, earnings caused Mr. Market to throw a tantrum.
Mr. Market did not like what Cardlytics presented: after running up to $5.00 into the earnings report date, a precipitous 30% drop in share price to $3.50 followed, but then the shares recovered on Friday to $4.40, i.e. approximately down 10%-15% from the Wednesday $5.00 level.
Now what do I make of the reported earnings? Thanks for asking - I think CDLX 0.00%↑ did what some call kitchen sinking.
Outline
TL;DR
Equity Summary
Q3 2024
More Information on Bridg and Rippl
My Take
TL;DR
A lot of things are going on. On the face of it, the headline data provided was not positive, but I also see green shoots.
I believe Cardlytics used the share price decline as an excuse to “kitchen sink” the quarter.
Still a risky play, but also potentially high reward.
In his recent YT video, Unemployed Value Degen indicates that the share price may have found a floor (at minute 54). He reiterated also that for him, CDLX 0.00%↑ has the potential to 50x.