Eric Jackson Bullish on Fintech Lender Dave
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy DAVE?
Source: NASDAQ.COM
- Investor Focus: Following his successful investments in Carvana and Opendoor, Eric Jackson is now bullish on fintech company Dave, arguing that the market undervalues it and it could see significant upside.
- Product Innovation: Dave's flagship product, ExtraCash, offers users instant advances of up to $500 with a flat fee structure instead of traditional interest charges, significantly alleviating financial burdens for users.
- Risk Management: Dave is migrating its ExtraCash receivables to Coastal Community Bank, reducing its cash risk of approximately $200 million, allowing the company to focus on new product development and shareholder returns.
- Future Outlook: Jackson's three-year scenario model published on his Substack suggests that if the migration is successful and new products ramp up, Dave could achieve significant revenue growth, although the challenges to meet these targets are considerable.
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Analyst Views on DAVE
Wall Street analysts forecast DAVE stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 267.370
Low
250.00
Averages
312.50
High
347.00
Current: 267.370
Low
250.00
Averages
312.50
High
347.00
About DAVE
Dave Inc. is a neobank, providing a mobile-first financial services platform designed to help people manage their money. The Company offers access to short-term liquidity, fee-free banking, and financial management tools. Its platform and products include ExtraCash and Dave Checking. ExtraCash is its flagship overdraft product, offered through its bank partners, that provides its members with credit in the form of a discretionary overdraft to bridge liquidity gaps between paychecks. Dave Checking is a digital demand deposit account offered through its bank partners with no account minimums or corresponding fees, and Federal Deposit Insurance Corporation (FDIC) pass-through insurance. Its members can open a Dave Checking account through its mobile application, add funds, and begin spending using a virtual or physical Dave branded debit Mastercard (Dave Debit Card). Its personal financial management products include Budget, Side Hustle, and Goals.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Eric Jackson Bullish on Dave's Stock Potential
- Jackson's Investment Strategy: Eric Jackson, founder of EMJ Capital, is renowned for identifying asymmetric compounders, having famously bet on Carvana when it was priced at just $3.50, leading to a staggering 100x increase to $413, showcasing his unique market insights.
- Market Positioning of Dave: As an AI-driven lending platform for lower-income households, Dave's flagship product, ExtraCash, allows users to access instant advances of up to $500 without credit checks, employing a fixed fee model that significantly differentiates it from traditional banks.
- Risk Management Innovation: Dave is migrating its ExtraCash receivables to an off-balance-sheet structure with Coastal Community Bank, transferring credit risk to Coastal and reducing Dave's exposure to collection losses, which is expected to unlock more cash flow for future growth opportunities.
- Future Growth Potential: Jackson's three-year scenario model published on his Substack indicates that if Dave successfully launches new products and accelerates stock buybacks, it could achieve a free cash flow per share of $106 by 2029, suggesting significant stock price appreciation potential, although achieving these targets may be challenging.
See More
Eric Jackson Bullish on Fintech Lender Dave
- Investor Focus: Following his successful investments in Carvana and Opendoor, Eric Jackson is now bullish on fintech company Dave, arguing that the market undervalues it and it could see significant upside.
- Product Innovation: Dave's flagship product, ExtraCash, offers users instant advances of up to $500 with a flat fee structure instead of traditional interest charges, significantly alleviating financial burdens for users.
- Risk Management: Dave is migrating its ExtraCash receivables to Coastal Community Bank, reducing its cash risk of approximately $200 million, allowing the company to focus on new product development and shareholder returns.
- Future Outlook: Jackson's three-year scenario model published on his Substack suggests that if the migration is successful and new products ramp up, Dave could achieve significant revenue growth, although the challenges to meet these targets are considerable.
See More
Jackson Bullish on Dave's Future Growth Potential
- Revenue Growth Potential: Jackson forecasts that 'Pay-In-4' could add between $25 million and $117 million in annual revenue for Dave by 2028, significantly enhancing the company's financial performance and driving stock price appreciation.
- Market Comparison Analysis: Jackson compares Dave to Sezzle, noting the latter's stock surged 47 times between 2024 and 2025, emphasizing Dave's potential to replicate this success due to its vast customer data and high-profit leverage.
- Product Innovation and Market Demand: Dave is testing the 'Pay-In-4' interest-free installment payment option, expected to roll out fully later this year, addressing consumer demand for flexible payment solutions while enhancing customer loyalty and market share.
- Investor Sentiment and Market Reaction: Despite Dave's stock declining over 16% year-to-date, investor sentiment on Stocktwits remains 'bullish', indicating confidence in the company's future growth prospects.
See More
Market Rebound: Zacks Recommends Three Stocks
- Strong Performance of Dave Inc.: As one of the fastest-growing fintech firms in the U.S., Dave Inc.'s stock has soared over 400% in the past two years, currently trading at an 11X forward earnings multiple, with EPS expected to grow by 10% in FY26 and another 24% in FY27, indicating robust growth potential.
- GigaCloud's Technological Breakthrough: GigaCloud, which went public in 2022, has seen its stock rise 17% year-to-date, with Q4 EPS of $1.04 surpassing expectations of $0.65, and projected EPS growth of 17% and 16% for FY26 and FY27, respectively, alongside annual sales exceeding $1 billion, showcasing strong market performance.
- Sezzle's Growth Potential: As a digital payments platform, Sezzle's stock has also increased over 400% in the past two years, currently trading at a 13X forward earnings multiple, with EPS expected to spike by 30% this year and another 23% in FY27, highlighting its strong growth prospects in the digital payments sector.
- Significant Investment Opportunities: The three stocks recommended by Zacks experts are all seen as having the potential to achieve over 100% growth in the coming year, providing excellent investment opportunities, especially in the context of the current market rebound.
See More
Dave Inc and Lululemon Options Trading Activity
- Dave Inc Options Volume: Today, Dave Inc's options volume reached 4,250 contracts, representing approximately 425,000 shares, which accounts for 61.8% of its average daily trading volume of 687,930 shares over the past month, indicating a significant increase in market interest.
- High Strike Call Activity: Within Dave Inc, the $180 strike call option is particularly active, with 1,362 contracts traded today, equating to about 136,200 shares, suggesting that investors are increasingly optimistic about future price increases.
- Lululemon Options Volume: Concurrently, Lululemon's options volume hit 17,291 contracts, representing around 1.7 million shares, which is 56.6% of its average daily trading volume of 3.1 million shares over the past month, reflecting the brand's strong market performance.
- Lululemon High Strike Call Activity: For Lululemon, the $175 strike call option saw 853 contracts traded, amounting to approximately 85,300 shares, indicating investor confidence in its growth potential moving forward.
See More
G2 Investment Partners Acquires Stake in Xometry
- New Investment Position: G2 Investment Partners has established a new position in Xometry, acquiring 221,679 shares valued at $13.2 million, which represents 3.1% of its assets under management, indicating confidence in the company's prospects.
- Rapid Accumulation: G2 quickly ramped up its holdings in Xometry to become one of its largest positions by year-end, despite holding no shares as of September 30, reflecting optimism about Xometry's growth potential.
- Financial Performance: Xometry reported a loss of $8.6 million in the fourth quarter, an improvement from a $9.9 million loss a year earlier, while revenue surged 30% year-over-year to $192 million, showcasing its competitive edge in a rapidly growing market.
- Market Outlook: The number of active suppliers and buyers for Xometry increased by 17% and 20%, respectively, and despite a 34.8% drop in stock price, the company must achieve GAAP profitability to support long-term stock appreciation potential.
See More
Eric Jackson Bullish on Dave's Stock Potential
- Jackson's Investment Strategy: Eric Jackson, founder of EMJ Capital, is renowned for identifying asymmetric compounders, having famously bet on Carvana when it was priced at just $3.50, leading to a staggering 100x increase to $413, showcasing his unique market insights.
- Market Positioning of Dave: As an AI-driven lending platform for lower-income households, Dave's flagship product, ExtraCash, allows users to access instant advances of up to $500 without credit checks, employing a fixed fee model that significantly differentiates it from traditional banks.
- Risk Management Innovation: Dave is migrating its ExtraCash receivables to an off-balance-sheet structure with Coastal Community Bank, transferring credit risk to Coastal and reducing Dave's exposure to collection losses, which is expected to unlock more cash flow for future growth opportunities.
- Future Growth Potential: Jackson's three-year scenario model published on his Substack indicates that if Dave successfully launches new products and accelerates stock buybacks, it could achieve a free cash flow per share of $106 by 2029, suggesting significant stock price appreciation potential, although achieving these targets may be challenging.
See More
Eric Jackson Bullish on Fintech Lender Dave
- Investor Focus: Following his successful investments in Carvana and Opendoor, Eric Jackson is now bullish on fintech company Dave, arguing that the market undervalues it and it could see significant upside.
- Product Innovation: Dave's flagship product, ExtraCash, offers users instant advances of up to $500 with a flat fee structure instead of traditional interest charges, significantly alleviating financial burdens for users.
- Risk Management: Dave is migrating its ExtraCash receivables to Coastal Community Bank, reducing its cash risk of approximately $200 million, allowing the company to focus on new product development and shareholder returns.
- Future Outlook: Jackson's three-year scenario model published on his Substack suggests that if the migration is successful and new products ramp up, Dave could achieve significant revenue growth, although the challenges to meet these targets are considerable.
See More
Jackson Bullish on Dave's Future Growth Potential
- Revenue Growth Potential: Jackson forecasts that 'Pay-In-4' could add between $25 million and $117 million in annual revenue for Dave by 2028, significantly enhancing the company's financial performance and driving stock price appreciation.
- Market Comparison Analysis: Jackson compares Dave to Sezzle, noting the latter's stock surged 47 times between 2024 and 2025, emphasizing Dave's potential to replicate this success due to its vast customer data and high-profit leverage.
- Product Innovation and Market Demand: Dave is testing the 'Pay-In-4' interest-free installment payment option, expected to roll out fully later this year, addressing consumer demand for flexible payment solutions while enhancing customer loyalty and market share.
- Investor Sentiment and Market Reaction: Despite Dave's stock declining over 16% year-to-date, investor sentiment on Stocktwits remains 'bullish', indicating confidence in the company's future growth prospects.
See More
Market Rebound: Zacks Recommends Three Stocks
- Strong Performance of Dave Inc.: As one of the fastest-growing fintech firms in the U.S., Dave Inc.'s stock has soared over 400% in the past two years, currently trading at an 11X forward earnings multiple, with EPS expected to grow by 10% in FY26 and another 24% in FY27, indicating robust growth potential.
- GigaCloud's Technological Breakthrough: GigaCloud, which went public in 2022, has seen its stock rise 17% year-to-date, with Q4 EPS of $1.04 surpassing expectations of $0.65, and projected EPS growth of 17% and 16% for FY26 and FY27, respectively, alongside annual sales exceeding $1 billion, showcasing strong market performance.
- Sezzle's Growth Potential: As a digital payments platform, Sezzle's stock has also increased over 400% in the past two years, currently trading at a 13X forward earnings multiple, with EPS expected to spike by 30% this year and another 23% in FY27, highlighting its strong growth prospects in the digital payments sector.
- Significant Investment Opportunities: The three stocks recommended by Zacks experts are all seen as having the potential to achieve over 100% growth in the coming year, providing excellent investment opportunities, especially in the context of the current market rebound.
See More
Dave Inc and Lululemon Options Trading Activity
- Dave Inc Options Volume: Today, Dave Inc's options volume reached 4,250 contracts, representing approximately 425,000 shares, which accounts for 61.8% of its average daily trading volume of 687,930 shares over the past month, indicating a significant increase in market interest.
- High Strike Call Activity: Within Dave Inc, the $180 strike call option is particularly active, with 1,362 contracts traded today, equating to about 136,200 shares, suggesting that investors are increasingly optimistic about future price increases.
- Lululemon Options Volume: Concurrently, Lululemon's options volume hit 17,291 contracts, representing around 1.7 million shares, which is 56.6% of its average daily trading volume of 3.1 million shares over the past month, reflecting the brand's strong market performance.
- Lululemon High Strike Call Activity: For Lululemon, the $175 strike call option saw 853 contracts traded, amounting to approximately 85,300 shares, indicating investor confidence in its growth potential moving forward.
See More
G2 Investment Partners Acquires Stake in Xometry
- New Investment Position: G2 Investment Partners has established a new position in Xometry, acquiring 221,679 shares valued at $13.2 million, which represents 3.1% of its assets under management, indicating confidence in the company's prospects.
- Rapid Accumulation: G2 quickly ramped up its holdings in Xometry to become one of its largest positions by year-end, despite holding no shares as of September 30, reflecting optimism about Xometry's growth potential.
- Financial Performance: Xometry reported a loss of $8.6 million in the fourth quarter, an improvement from a $9.9 million loss a year earlier, while revenue surged 30% year-over-year to $192 million, showcasing its competitive edge in a rapidly growing market.
- Market Outlook: The number of active suppliers and buyers for Xometry increased by 17% and 20%, respectively, and despite a 34.8% drop in stock price, the company must achieve GAAP profitability to support long-term stock appreciation potential.
See More
