Cardlytics Stock Skyrockets 92% on Bank Deal, Citron Backing
Shares surge on massive volume after the ad platform announces a major bank partnership and gets a bullish endorsement from Citron Research.
Shares of Cardlytics (NASDAQ: CDLX) surged an astonishing 92.66% in a single trading session, driven by a powerful combination of a new bank partnership and a high-profile bullish mention from activist short-seller Citron Research.
The digital advertising platform, which partners with banks to run cash-back offer programs, saw its trading volume spike to over 150 times the daily average as investors scrambled to react to the news. The rally was ignited by the company's announcement of an expanded partnership with a major U.S. bank and the launch of a new, more efficient merchant platform.
Adding significant fuel to the fire, , labeling Cardlytics the 'next fallen angel to trade much higher.' The firm highlighted the company's deep integration with financial giants like American Express, Chase, and Bank of America, suggesting Cardlytics is on the verge of a significant transformation, similar to that experienced by Affirm Holdings (APP), due to the increasing value of first-party data.
The company has been working to expand its network, recently to scale the number of card-linked offers available to Amex members. This strategy aims to provide more value to cardholders and attract more advertisers to the platform.
The market's explosive reaction underscores investor optimism that the new partnership could significantly enhance Cardlytics' revenue and path to profitability. indicates a dramatic shift in sentiment for the stock, which had been significantly beaten down over the past year. Investors will now be closely watching whether the company can successfully execute on this new partnership and translate the renewed market enthusiasm into sustained fundamental growth.