After reporting earnings last Thursday night, Green Dot (GDOT) plunged over 60% during trading on Friday. So did the company just die?
The company provides widely distributed, low cost banking and payment solutions to a broad base of U.S. consumers. Green Dot's products and services include its market leading category of General Purpose Reloadable (GPR/) prepaid cards and its industry-leading cash transfer network which are available directly to consumers online and through a network of approximately 60,000 retail stores nationwide where 95% of Americans shop.
For the most part, the company provides the prepaid cards available at Wal-Mart (WMT). This program accounted for 62% of revenue during Q2. The biggest fear is that Green Dot will no longer dominate the market as larger players in the banking industry enter the sector in mass.
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