When Mark Cuban endorses an investment, people take notice. The self-made billionaire has a history of successful investments, so when he backs a company, it usually makes headlines.
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One of Cuban’s investments, Dave Inc. (DAVE), has created a buzz in the markets, helping to propel the stock to big gains so far in 2025. But will stock market momentum and backing from a high-profile investor continue to drive Dave’s stock higher, or do the risks outweigh the upside potential? Here are some things to consider.
Cuban’s endorsement has certainly drawn investor attention to Dave, but that’s not enough to keep the stock price high. What investors are really betting on with Dave is rapid growth.
Dave is a banking app that is “designed to make finances easier,” in the company’s words. The app’s main draw for those strapped for cash is the ability to earn up to $500 in five minutes or less through a feature known as “ExtraCash.” Basically, it is a short-term, interest-free loan designed to help people live paycheck to paycheck.
Whatever the app does seems to be popular. Revenue is booming, as is the creation of the company’s flagship “ExtraCash” product. Perhaps even more impressive is that the rapidly growing company is already demonstrably profitable and its cash balances are actually increasing.
Below are some specific data points from the company’s second-quarter earnings release on August 6, all year-over-year.
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Revenue grew 64%, to $131.7 million
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Net income increased 42% to $9.1 million.
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Adjusted net income increased 233% to $45.7 million
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Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) soared 236% to $50.9 million.
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GAAP earnings per share (diluted) increased 32% to $0.62
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Adjusted (diluted) EPS increased 210% to $3.14
Additionally, the company raised its 2025 revenue and adjusted EBITDA guidance to between $505 million and $515 million and $180 million and $190 million, respectively.
All of these factors are signs of a rapidly growing company, something that makes market participants willing to pay a premium.
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For momentum investors, Dave remains a Wall Street favorite. As of Nov. 14, the stock was up about 138% so far this year, although it remains below its high set in early July.