So far, prepaid debit card provider Green Dot (Nasdaq:GDOT) has followed a pretty familiar pattern - a successful IPO, some initial strength as big investment banks roll out coverage, and then a skidding share price as IPO buyers cash out and actual financial performance fails to match the lofty expectations of the IPO honeymoon. Even though Green Dot has disappointed some investors and there is still some regulatory risk, the stock seems to have skidded past a point where the fundamentals would support.
Q2 Good, but Not Good Enough
On just a casual first look, it might be hard to see why these shares have dropped to a 52-week low. Revenue rose 29% in the second quarter on a 23% increase in new activations and a 27% increase in active cards. Unfortunately, good as that was, it was below the consensus estimate for the second time in a row, and also represents ongoing deceleration in growth.
Continue via the link below:
http://stocks.investopedia.com/stock-analysis/2011/Green-Dot-Looking-Black-And-Blue-GDOT-NTSP-WU-WMT-MA0808.aspx
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