IB Net Payout Yields Model

MoneyLion: More Irrational De-SPAC Pain


  • MoneyLion collapsed to $6 following the de-SPAC transaction.
  • The digital banking platform recently hiked revenue guidance for 2023 by 24% with 84% growth rates.
  • The stock only trades at 3x revenue estimates despite the projected fast growth and the move into crypto and BNPL.
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Every day an investor can find a stock crushed after completing a de-SPAC transaction. In this case, MoneyLion (ML) completely collapsed following closing their deal with Fusion Acquisition Corp. back on September 22. My investment thesis is very Bullish on the digital banking platform with the stock now around $7.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Update - Dec. 6, 2021
The more MoneyLion falls, the more investors will make over the long haul. At this price, the stock only trades at 1.5x '23 sales targets. The valuation is now priced for no growth while the fintech just reported adjusted revenues grew over 100%. 

Finviz Chart

Update - Nov. 8, 2021

Easy call by Craig-Hallum on MoneyLion after the absurd de-SPAC dip below $6. 

  • MoneyLion (NYSE:ML) more than erases last week's losses on Monday after Craig-Hallum analyst George Sutton initiates the stock with a Buy rating.
  • Shares of ML climb 17% on Monday, though the stock is still down about 35% from mid-September.
  • The gap from September "has created a very attractive entry point," Sutton writes in a note to clients.
  • The analyst also gives ML a $10 price target based on 8x enterprise value/full year 2022 revenue, implying 83% upside from Friday's close.
  • "It's not hard to imagine ML more than tripling in the next 2-3 years considering SoFi's $18B valuation on an expected $1.5B in revenue in FY22," Sutton says.
Finviz Chart


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