Q3 Results Bought Back the Bulls, Shares Up By 66%

The California-based company, Nerd Wallet Inc. (NASDAQ: NRDS) engages in the provision of financial education and empowerment. The organization operates a website and mobile application that generate revenue by advertising financial products to its audience.

Q3 Results Surged the Price

The personal finance company reported its Q3 2019 financial results on 26 October. When the results were published, the NRDS stock skyrocketed. Where the company’s total revenue was up 7.15%, its credit card revenue decreased by 6% YoY.

The company’s partners in the financial services industry have been spending less on marketing. They are being cautious with their lending and trying to be more careful with their finances. This safety lock is the result of the recent banking crisis.

The company’s 24 Million average monthly unique users (MUUs) were up by 22% YoY, indicating strong engagement in areas such as travel products, banking, and investing. NerdWallet’s CFO, Lauren StClair, announced that the company’s Q3 revenue growth was at the high end of their guidance.

What Are the CFO’s Views?

The company observed a stabilized performance in some of its more challenging verticals, such as credit cards. They also saw a positive momentum in their loan segement.

Lauren said that more and more people are starting to know about the company, which makes them feel good. As the economy gets better, they’ll be able to help even more people, which will make them even more valuable.

Technical Analysis and Prediction of the NRDS Stock Price

At the time of writing, the NRDS stock price is currently trading at $10.78. The trend was negative until October 26th when the stock not only broke the trend but also surpassed a primary resistance level of $8.67.

The bulls have made three continuous bullish candles, resulting in the share price being pushed above both the 50-day and 150-day exponential moving averages (EMAs). The 50-day and 150-day EMAs are at $8.68 and $9.95 respectively.

Bearish Pullover is Possible?

The current trend of the stock price is approaching the resistance level of $11.29, with a support level of $8.67. One of the primary indicators, the relative strength index (RSI) has already reached the overbought level of 70 due to the sudden breakout, indicating that some correction will likely be seen before NRDS can even attempt to break its immediate resistance level.

Furthermore, the prediction of the NRDS stock will be bearish in the short term. The above analysis suggests that the stock will have some correction before the bulls can attempt to break past the resistance level. Therefore, some short selling can be done as the target price could be the 150-day EMA.

Conclusion

Nerd Wallet Inc. (NASDAQ: NRDS) has shared positive financial results at the end of this October. The report pushed the price to more than 66% within a week. At present, the stock is near the supply zone and the prediction is bearish.

Technical Levels

Support Levels: $8.67 and $6.48
Resistance Levels: $11.29 and $14.43

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.