Should You Buy the Dip in Mogo Finance Technology?
Mogo Finance Technology Inc. (TSX:MOGO) is a financial technology company that offers consumers access to a variety of finance options by opening an online account. The rise of fintech has been a major development over the past decade especially as younger generations turn away from brick-and-mortar banking operations. Mogo offers credit products and a credit score with the opening of an account.
Mogo stock was down 5.41% in early afternoon trading on February 9 in the midst of another significant sell-off for the S&P/TSX Index. Shares of Mogo have declined 27% in 2018. So should you wait on the sidelines or jump in?
In its 2017 third quarter results Mogo saw product revenue and fees rise 61% year over year and total revenue jump 10% to $12.6 million from Q2 2017. Adjusted EBITDA soared 96% from the prior year to $1 million; the fifth successive quarter of positive adjusted EBITDA. The company posted an adjusted net loss of $4.1 million compared to $4.3 million in the previous quarter.
In January Mogo announced the formation of Mogo Blockchain Technology, a division which would serve its blockchain operations. For its first strategic initiative Mogo planned a bitcoin mining push through an agreement with DMG Blockchain Solutions.
Mogo has projected its product revenues and fees segment to represent 50% of total revenue by the end of 2018. The company is also targeting a member count of between 800,000 and 1 million by the end of this year. Mogo is a top fintech company poised for big growth down the line. This recent dip represents an attractive speculative buying opportunity in the midst of a global stock market rout.