How to Buy MoneyLion (NYSE: ML) Stock

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Contributor, Benzinga
June 21, 2022

Check out what MoneyLion offers.

$78.64
-1.90[-2.36%]
Last update: 4:00PM (Delayed 15-Minutes)
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Open79.860Close78.640Vol / Avg.130.826K / 176.007KMkt Cap827.143MDay Range76.010 - 79.97052 Wk Range7.500 - 87.000

MoneyLion, a financial technology company, offers mobile banking, lending and investment solutions. The firm offers a personalized, all-in-one, digital financial platform that provides convenient, low-cost access to banking, borrowing and investing solutions tailored for its customers, rooted in data and delivered through its proprietary technology platform. 

MoneyLion states it is “where the 99% can feel 100% about their future,” and everyone wants to feel 100% about their money. 

They have over 9 million members because the financial products they build are accessible with few or no fees and fewer barriers to entry. So, is MoneyLion a worthwhile investment? 

How to Buy MoneyLion (NYSE: ML) Stock

Not all brokers will allow you to trade or invest in MoneyLion shares. However, if your current broker already offers MoneyLion, all you need to do is search for MoneyLion on the platform, open a trade ticket, fill in the details and click submit or buy to acquire its shares. 

However, if your broker does not allow you to buy the company’s shares, or you don’t yet have a brokerage account, then here’s what you need to do.

Step 1: Pick a brokerage.

A broker plays its role as the intermediary between you and the stock exchange (in this case, the New York Stock Exchange). You place an order via your broker to buy a stock, and the broker carries out those instructions. So, for example, if you decide to purchase shares in MoneyLion, you instruct your broker to buy the number of shares you request at the price you set, and it will carry out the instructions specified.

In return, the broker may charge a fee for the services provided. The price varies depending on the broker. Therefore, it is vital to research costs and other aspects before setting up an account.

Step 2: Decide how many shares you want.

Once you have chosen a broker, you need to fund your account and decide how many shares to buy. Therefore, ensure you have considered the amount of risk attributed to MoneyLion and the percentage of your account that will be used for a particular stock.

Starting with a small investment and adding consistently over time — called dollar cost averaging — is used by many investors. However, before you make your purchase, consider how you will enter the market. 

Step 3: Choose your order type.

This stage requires you to decide on how your position is executed. Different order types exist, but the two most commonly used are market and limit orders. 

Market orders mean you acquire the shares at a price dictated by the market. Or, in other words, you buy at the current market price. Therefore, using market orders results in a high chance your order will be filled. 

Limit orders mean that the price you buy the stock at is decided by you. You can determine what price you buy the shares at, but you risk that the order won’t be filled if the price doesn’t hit your predetermined level. 

Step 4: Execute your trade. 

After you have completed all the necessary steps to put you in a position to buy the shares, all that is left to do is just that — buy the shares. Once you have opened the trade ticket and completed the required fields, the last thing to do is click buy. Once completed, you can monitor the stock and your other positions by navigating to the correct tab on your brokerage platform.

Where to Buy MoneyLion Stock

The best place to purchase shares of MoneyLion is through a brokerage. However, you can choose from numerous brokers out there, and it can be challenging to find the best one for you. Understanding different broker fees and ensuring the broker is regulated is essential.

Below is a list of the best brokers to purchase MoneyLion on its platform.

ML Stock History & Value

MoneyLion was founded in 2013 and went public on the stock market on Sept. 23, 2021, following a business combination with Fusion Acquisition. 

The stock has had a difficult time since its IPO, with the stock tumbling almost 82%. Its dreadful start to the year comes despite recent growth. The online bank is yet to be profitable, and its share price has struggled to regain momentum. However, the company posted record quarterly revenue in the first quarter, climbing 105% year-over-year. In addition, total customers grew a record 117% to 3.9 million, reflecting the improvement made over the past quarter. 

Growth in recent months does not necessarily support the argument for such a significant decline in its shares. The stock may be undervalued; however, MoneyLion is still not convincing investors of its potential. 

MoneyLion: What Analysts Are Saying

Focusing on analyst comments and sentiment can help investors understand both positive and negative cases for a stock. For example, bullish and bearish analysts will present both reasons to buy the stock (bullish) or sell the stock (bearish), helping you to build a balanced view of the pros and cons.

MarketBeat Bear Case

According to MarketBeat, short interest decreased in May compared to the prior month. However, short interest still totaled 1.1 million shares as of May 15, and, currently, 1.6% of the company’s shares are sold short. 

Cantor Fitzgerald bull Case

Cantor Fitzgerald currently has a bullish stance on MoneyLion. Analyst Josh Siegler lowered the firm's price target. Still, he kept an Overweight rating on the shares after MoneyLion demonstrated strong top-line growth and healthy growth margins in the fourth quarter. However, there has been no update after the company’s first-quarter earnings. 

Siegler said he believes while the cash burn may be alarming to some, it was primarily because of one-time fees and restricted cash accounting. 

Pros and Cons of MoneyLion

Progression: The company is yet to be profitable, but its growth figures are promising for current shareholders. Meanwhile, record revenue, continued growth in its users and significant insider buying point to positives for the stock.

Stock Price: After such a significant fall in the stock price, investors can invest in MoneyLion at an attractive price compared to when it first went public. 

Competition: Online banking has grown considerably over the last few years, and the number of companies now offering mobile banking services has exploded. In addition, the services it does offer can be found on other platforms without having to pay a membership fee. Numerous online banking services are available, and MoneyLion will need to find a way to differentiate itself from the competition. 

Momentum: The performance from MoneyLion has been nothing short of disappointing, and a drop of almost 85% is significantly weaker than current market performance. After impressive growth in earnings and a slight recovery in its stock price, it's difficult to argue if MoneyLion can sustain momentum going forward, which may tempt investors because of the potential positive risk-reward.

Is MoneyLion a Buy, Sell or Hold?

The negative impact on MoneyLion’s stock cannot solely be based on the company's performance. Inflation concerns, the Russia-Ukraine war and general pessimistic sentiment have dragged down the market. Even so, there are general market worries about consumer debt, and the company is not yet profitable. Investors are clearly yet to be convinced. 

On the other hand, consistent growth in its revenue and new customer adds provide positives. In addition, the stock price decline may tempt investors to buy.

Frequently Asked Questions

Q

What is MoneyLion for?

A

MoneyLion is a mobile personal finance and lending app designed to help customers take control of their finances. Customers are provided with tools to help them track their spending, saving and credit usage.

Q

How much can you get from MoneyLion?

A

MoneyLion offers credit builder loans of up to $1,000. The online bank will review your finances and checking account and finally decide whether you’re approved for a loan and how much you will receive.

About Sam Boughedda, Stock Market Analyst

He is an expert in the following spaces: stock market news writing, analysis, and research.