Among the most anticipated initial public offerings of 2021 was NerdWallet (NASDAQ:NRDS), which just went public recently. Even though NRDS stock hasn’t been around for very long, it’s already made some big moves.
Moreover, the company reported revenue of $182 million this past year, and reportedly counted 21 million unique users per month in the first six months of 2021.
Clearly, NerdWallet is a serious moneymaker and could offer value to its investors. So, let’s delve into NRDS stock and see if there’s a worthwhile opportunity here.
A Closer Look at NRDS Stock
The expected IPO price range was $17 to $19 per share. The actual IPO share price, at $18, was in line with that expectation.
Astoundingly, NRDS stock leaped more than 57% in its first trading session. That day, the stock started off at $23.50 and closed at $28.30.
Naturally, this will set off alarm bells for value-focused investors. After all, this price action sounds like a case of IPO-mania.
However, the buying frenzy seems to have calmed down. From Nov. 8 through now, NRDS stock traded sideways, clinging close to $25.
What we need to bear in mind is that institutional investors often will get to purchase pre-IPO shares of a stock.
In other words, most of us never really had a chance to buy shares of NerdWallet at $18.
We just have to be realistic and look at the current share price, and decide if the company is worth our investment capital.
Geeky, and Proud of It
NerdWallet actually has an interesting backstory.
According to a Reuters report, former hedge fund executive Tim Chen “was inspired to start NerdWallet after he failed to find a suitable answer on the internet to his sister’s question about which credit card was the most suitable for an expatriate living in Australia.”
Sometimes in life, when there’s a problem, you just have to be proactive and solve it yourself.
And sometimes, that’s how businesses are started. Today, NerdWallet provides guidance to its users on a number of personal finance topics, including credit cards, loans and mortgages.
As I alluded to earlier, NerdWallet now generates revenues in the hundreds of millions of dollars, and has millions of unique users every month.
If you have a geeky side, then you should definitely relate to this company.
Knowledge is power, and NerdWallet seeks to empower its users as the company’s credo is that “everyone should be able to make financial decisions with confidence.”
Growth Through Acquisitions
Apparently, NerdWallet’s presence is growing, and that’s a good thing for the company’s stakeholders.
NerdWallet’s first foray outside of the U.S. took place when the company acquired an established U.K.-based personal finance company called Know Your Money.
At the time of the acquisition, NerdWallet described Know Your Money as the U.K.’s largest comparison-site-serving businesses.
The previous year, Know Your Money reportedly had around 5 million consumers and 1.2 million businesses using its products.
Additionally, NerdWallet expanded its portfolio with the acquisition of small business loan provider Fundera.
The press release describes Fundera as “the go-to financial resource for the 28 million small and medium-sized businesses (SMBs) operating in the United States.”
Fundera provides its users with access to legal services, free financial content and even one-on-one communication with experienced lending specialists.
Impressively, Fundera has helped more than 85,000 SMBs secure financial products.
The Bottom Line
NerdWallet started with an idea, and grew into a full-fledged portal providing a range of services in the personal finance space.
Some folks might be concerned, though, that NRDS stock jumped too early, and too high.
However, it’s evident that NerdWallet is in growth mode.
Therefore, the share price is justifiable, and could make another big move as more users avail themselves of NerdWallet’s geek-friendly fare.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.