Millennial-friendly innovation has become big business. For various fintech-related companies, this has certainly been true over the past year. For investors in de-SPAC (special purpose acquisition company) Dave (NASDAQ:DAVE), this sort of innovation is currently being positively viewed by the market. Today, DAVE stock has soared more than 13% at the time of writing on very heavy volume.
There are a number of reasons why such stocks are climbing today. The markets appear to be risk-on again, with investors seeking to buy the dip on some of their favorite growth stocks that have taken a hit due to expectations of rising interest rates. For DAVE stock, this has certainly been the case. This de-SPAC sunk below $5 per share recently, from its initial public offering (IPO) reference price of $10 per share. Today, DAVE stock trades above $14 per share, indicating a bullish turnaround is underway.
Can this stock continue higher? Time will tell. However, there’s a lot to like about this company’s business model.
Let’s take a look at what the bulls on Dave are buying into right now.
DAVE Stock Soars as Investors Buy Into the Future of Finance
- Dave is a company with a mission to “build products that level the financial playing field.”
- The company targets under-banked individuals, in the younger age demographic.
- Among the services Dave provides are early payment on paychecks and credit-building apps.
- Additionally, this company provides on-demand account services for its members.
- Dave’s financial products are Federal Deposit Insurance Corporation (FDIC) insured, up to $250,000.
- Additionally, this company offers no-fee banking, attractive for Dave’s demographic.
- Dave is currently valued at more than $5 billion, with more than 10 million members at the time of writing.
On the date of publication, Chris MacDonald 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.