BTFD? Credit card data analysis

To buy the dip or not. That was the question I was pondering as I caught up on the market this morning. Coronavirus scare has the market pulling back a bit and naturally I found myself as a potential buyer. I’m not a doctor or scientist, but I don’t believe the coronavirus is as big as an epidemic as some people make it out to be.

One company that I started to follow this morning was Cardlytics ($CDLX). I am a bit late to the party here as the company went public in January 2019 at $17. The stock is trading at around $88 at the time of writing.

The stock fits nicely in one of the criteria I like in stocks: unsexy that not many people know about. The average person does not know that Cardlytics exist or can explain the business model without deep research.

I simply love the business model. Cardlytics creates software that helps marketers analyze credit card spending. Every major bank is a customer or will likely be a customer as Cardlytics helps analyze their customers’ spending habits and identify trends so that they can better reach their customers.

The stock has already 5x’ed since IPO and is definitely a bit overvalued. With that said, the business model is strong and major financial institutions with lots of cash are their primary customers so I see this growing quite significantly.

I’ll be monitoring this one and be looking to add to my portfolio when there’s a dip.