Latest news with #Chime
Yahoo
4 days ago
- Business
- Yahoo
Should You Buy Chime Stock While It's Below $43?
Key Points Chime's stock has cooled off since its IPO last month. It's still growing rapidly, and its margins are improving. It doesn't look expensive relative to its long-term growth potential. 10 stocks we like better than Chime Financial › Chime (NASDAQ: CHYM), a fintech company that provides mobile-first banking services for its partner banks, went public at $27 on June 12. It started trading at $43, soared as high as $44.94 during the day, and closed at $37.11. Today, it trades at around $30. Should investors buy Chime's stock as it trades far below its opening price from its first day? Let's take a closer look at its business model, growth rates, and valuations to decide. What does Chime do? Chime isn't a bank. It only builds a user-friendly app that simplifies the banking process, and it relies on two FDIC-insured banks -- The Bancorp Bank and Stride Bank -- to hold and manage its customers' deposits. Through its app, it provides access to free checking and savings accounts with overdraft protection, early pay features, and other financial tools. It provides a Visa debit card with fee-free access to over 50,000 ATMs nationwide, as well as a secured Visa credit card to help its customers build up their credit scores. Chime mainly targets lower-income users who don't have enough assets to open higher-value accounts, which are usually excluded from those fees at traditional banks. Its early pay features (which allow its customers to access a portion of their earned wages early without accruing any interest) are useful for people who live paycheck to paycheck. However, Chime's customers don't have access to standard banking services like cashier checks, wire transfers, and money orders, and they can only make cash deposits at Green Dot retailers. They also can't take out mortgages or auto loans on the platform. Chime generates most of its revenue from its Visa debit and credit cards. Whenever those cards are used to make a purchase, the merchant pays Visa an interchange fee (also known as a swipe fee) equivalent to about 1%-3.5% of the transaction. Chime keeps up to 1% of that fee. A smaller percentage of Chime's revenue comes from The Bancorp Bank and Stride Bank, which pay out incentives based on the number of deposits it brings in. It could eventually strike similar referral deals with adjacent businesses like insurance and tax-filing companies. How fast is Chime growing? In 2023, Chime's revenue rose 27% to $1.28 billion, its gross margin expanded 4 percentage points to 83%, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved from negative 40% to negative 15%. It narrowed its net loss from $406 million to $189 million. Its number of active members grew 25% to 6.6 million during the year, yet it maintained a lower acquisition cost per customer by relying more heavily on referrals and digital campaigns instead of traditional ads. As a result, its margins expanded as its revenue rose at a faster rate than its marketing expenses. Its average revenue per active member (ARPAM) also improved from $210 to $212. In 2024, Chime's revenue grew 31% to $1.67 billion, its gross margin rose 5 percentage points to 88%, and its adjusted EBITDA margin improved to nearly breakeven levels. It narrowed its net loss again to $25 million. Its number of active members grew 21% to 8 million for the year, while its ARPAM jumped 16% to $245 as its members used its cards and services more frequently. That growth indicates Chime's ecosystem is getting stickier as it rolls out more features and it's widening its moat against one-stop shop fintech apps like SoFi Technologies. Does Chime look like a bargain at these levels? In the first quarter of 2025, Chime's revenue rose 32% year over year to $519 million, its gross margin stayed flat at 88%, and its adjusted EBITDA came in at positive 5%. Its number of active members grew 23% to 8.6 million as its ARPAM rose 9% to $251. However, its ARPAM for its active members who used at least six of its products -- who accounted for 12% of its active member base during the quarter -- was $442. That high ARPAM indicates it can squeeze more revenue from its most dedicated users as its ecosystem expands. For the full year, analysts expect Chime's revenue to rise 26% to $2.1 billion with a positive adjusted EBITDA of $53 million. From 2025 to 2027, they expect its revenue and adjusted EBITDA to grow at a CAGR of 19% and 175%, respectively. With an enterprise value of $10.1 billion, Chime doesn't look expensive at 4 times next year's sales and 43 times its adjusted EBITDA. It isn't a screaming bargain yet, but it could be a great long-term play on the growth of banking services for unbanked and underbanked individuals. Should you buy stock in Chime Financial right now? Before you buy stock in Chime Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chime Financial wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,415!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Visa. The Motley Fool has a disclosure policy. Should You Buy Chime Stock While It's Below $43? was originally published by The Motley Fool
Business Wire
14-07-2025
- Business
- Business Wire
Chime Announces Time Change of Second Quarter 2025 Earnings Conference Call
SAN FRANCISCO--(BUSINESS WIRE)--Chime® (Nasdaq: CHYM), a leading consumer financial technology company, announced today that it has changed the time of its second quarter 2025 earnings conference call. Chime will now host a conference call to discuss the results at 3:00 p.m. Pacific Time (6:00 p.m. Eastern Time) on August 7, 2025, the same day as previously announced. The company will release its financial results after market close on the same day, as scheduled. A live webcast of the earnings conference call will be accessible on the Events & Presentations section of Chime's Investor Relations website at A replay will be available on the website following the call. About Chime: Chime (Nasdaq: CHYM) is a financial technology company founded on the premise that core banking services should be helpful, easy, and free. We offer a broad range of low-cost banking and payments products that address the most critical financial needs of everyday people. Our member-aligned business model has helped millions of people to unlock their financial progress. Member deposits are FDIC-insured through The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, up to applicable limits.
Wall Street Journal
14-07-2025
- Business
- Wall Street Journal
WSJ's Take On the Week: Morgan Stanley Exec Talks IPOs, Tokenized Stocks and More
After a couple years in a slump, initial public offerings have rebounded in 2025. Arnaud Blanchard, global co-head of equity capital markets at Morgan Stanley, joins us to discuss how IPOs from companies such as Chime and Voyager Technologies are boosting the market. He discusses where the IPO business might go in the second half of 2025 and if it could return to 2021 highs.
Wall Street Journal
13-07-2025
- Business
- Wall Street Journal
Morgan Stanley Exec on the IPO Market and Robinhood's Tokenized Stocks
Arnaud Blanchard, global head of equity capital markets at Morgan Stanley, joins WSJ's Take On the Week to discuss how recent IPO deals from companies like Chime and Voyager Technologies are helping the IPO market get a mild bump, where the market is expected to go in the second half of 2025, and if there is any potential of the market returning to 2021 highs. Photo: WSJ
Business Insider
12-07-2025
- Business
- Business Insider
Seaport fintech analysts hold an analyst/industry conference call
FinTech Analysts discuss Chime's (CHYM) business model, key metrics, fundamental outlook, competitive environment, regulation, interchange, product expansion opportunity's and valuation on an Analyst/Industry conference call to be held on July 18 at 12 pm. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
