MoneyLion Declines 32% Year to Date: Should You Buy the Stock Now?

Core Viewpoint - MoneyLion Inc. has experienced a significant decline in its stock performance year-to-date, contrasting sharply with its competitors, despite a strong one-year performance indicating a correction phase [1][2]. Group 1: Stock Performance - MoneyLion's shares have lost 32.1% year-to-date, while the industry has grown by 5.9% and the Zacks S&P 500 composite has risen by 21.5% [1]. - Over the past year, MoneyLion's stock surged by 98%, suggesting it is currently undergoing a correction phase [2]. - The stock closed at $44.52, which is 139.9% below its 52-week high of $106.82, and is trading below its 50-day moving average, indicating bearish sentiment [9]. Group 2: Customer Growth and Engagement - MoneyLion has implemented a complete ecosystem strategy, resulting in a 73% year-over-year customer growth and a 10.4% sequential increase in the second quarter of 2024 [3]. - The company reported a total of 27.7 million products consumed on its platform by the end of the second quarter of 2024, indicating robust product consumption [3]. Group 3: Financial Performance and Valuation - MoneyLion's enterprise revenues increased by 17% sequentially in the second quarter of 2024, strengthening its position to diversify revenues across multiple financial verticals [4]. - The Price/Earnings ratio for MoneyLion is 9.52X, significantly lower than the industry's 22.49X, and the Price-to-Sales ratio is 0.76X compared to the industry's 6.75X, indicating potential for further appreciation [6]. - The Zacks Consensus Estimate for MoneyLion's 2024 sales is $529.1 million, reflecting a year-over-year growth of 25%, with anticipated revenue growth of 21.2% for 2025 [11]. Group 4: Liquidity Position - MoneyLion's current ratio stands at 2.85, significantly higher than the industry's 1.15, indicating the company's ability to meet short-term obligations with ease [10].