How is Mark Cuban-backed Dave faring after SPAC merger in 2022?

One of the first businesses to complete a SPAC merger and list on the stock exchange in 2022 is the Los Angeles-based banking app Dave Inc., which started trading on the Nasdaq in January 2022.

Billionaire investor Mark Cuban backs Dave, and it often gains traction among stock market enthusiasts due to this reason. Mr Cuban is a celebrity investor and airs on the popular show Shark Tank.

In 2022, companies that went public through SPAC mergers and initial public offerings (IPOs) did not get the desired response. The spread of the omicron variant and the war between Ukraine and Russia affected the market negatively.

Later, rising inflation and interest rates increased the volatility in the equities markets. Let's look at how Mark Cuban-backed Dave is faring in the stock market.

How's DAVE stock performing?

On Tuesday, the DAVE stock surged 4.3 per cent and closed at US$ 0.72 per share. However, it was down 95.3 per cent from its all-time high of US$ 15.34 per share.

The DAVE stock has declined massively as it fell by 93 per cent year-to-date (YTD) and around 64 per cent since the past month.

The Relative Strength Index (RSI) value of the DAVE stock is 22.3, according to Refinitiv. This could mean that traders are overselling the stock. Some experts say that an RSI value of 30 or less indicates that a stock is being oversold.

In Q1 2022, Dave's GAAP operating revenues amounted to US$ 42.6 million, up from US$ 34.4 million in Q1 2021. Meanwhile, the company posted a net loss of US$ 34.8 million compared to a net income of US$ 3.9 million in the same comparable period.

Dave claimed in its financial report that it added 340,000 net new members, and its total count has increased to 6.4 million.

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Bottom line

Dave is a banking app, and it creates products that level the playing field in the financial world. Millions of users use Dave's financial tools to the bank, set budgets, avoid overdraft fees, locate employment, and establish credit.

The company claims that through marketing investment and new products, it can quickly gain share in a booming but underserved market of more than 150 million people.

Please note, the above content constitutes a very preliminary observation or view based on industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.