CDLX Should I Buy
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Cardlytics Inc (CDLX) is not a good buy for a beginner investor with a long-term strategy at this time. The stock is in a bearish trend, with weak financial performance, negative sentiment from analysts, and no strong positive catalysts to offset the risks. The lack of recent news or congress trading data further limits confidence in the stock's potential recovery.
The technical indicators show a bearish trend. The MACD is negative and expanding downward, RSI is at 18.121 indicating an oversold condition, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels, with S1 at 0.691 and S2 at 0.633, suggesting further downside potential.
Hedge funds are increasing their positions, with buying up 361.26% over the last quarter.
Insiders are selling heavily, with a 267.10% increase in selling activity over the last month. Analysts have lowered price targets and maintain cautious ratings. The company's financial performance has significantly deteriorated, with revenue, net income, and EPS all showing substantial YoY declines. The exit of BofA and Bridg divestiture add further uncertainty.
In Q4 2025, revenue dropped by 24.19% YoY to $56.1M. Net income declined by 47.08% YoY to -$8.25M, and EPS fell by 51.61% YoY to -0.15. Gross margin also decreased by 3.28% YoY to 45.45%. Overall, the company's financials show a clear negative growth trend.
Analysts have recently lowered price targets, with Evercore ISI reducing the target to $1 from $2 and Lake Street reducing it to $1.25 from $1.50. Both firms maintain cautious ratings, citing concerns over the company's Q1 guidance and the impact of the BofA exit and Bridg divestiture.
