Direct Digital Intrinsic Value Calculator – Direct Digital Plummets Following White Diamond Research Report
December 12, 2023
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The recent White Diamond Research report on Direct Digital ($NASDAQ:DRCT) has caused a major plummet in the company’s stock. Direct Digital is a software development company that specializes in creating innovative digital solutions for businesses. Their cutting-edge products have been widely praised by customers and industry experts alike. They noted that the company’s customer base was rapidly shrinking, and that their products were becoming outdated and less competitive. This caused a sudden drop in the stock price, as investors scrambled to sell off their shares.
The report also caused a ripple effect throughout the industry. Other companies in the same sector as Direct Digital saw their stock prices fall as well, as investors reacted to the news of the report. The effects of the research report have been felt far and wide, as investors have been hesitant to invest in the software development sector for fear of repeating what happened to Direct Digital.
Price History
Monday was a bad day for investors in DIRECT DIGITAL, as the company’s stock plummeted following the release of a White Diamond Research Report. When trading opened on Monday, DIRECT DIGITAL’s stock opened at $11.8, but by the close of trading it had dropped to $10.9. This marked an 11.3% decrease from the prior closing price of 12.3.
The plunge was largely attributed to the White Diamond Research Report, though the exact details remain unclear. As a result, many investors are now keeping a close eye on DIRECT DIGITAL’s stock to see if the company can recover from this sudden drop. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Direct Digital. More…
| Total Revenues | Net Income | Net Margin |
| 146.84 | 4.62 | 3.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Direct Digital. More…
| Operations | Investing | Financing |
| 3.4 | -0.82 | -4.11 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Direct Digital. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 86.75 | 80.35 | 0.45 |
Key Ratios Snapshot
Some of the financial key ratios for Direct Digital are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 142.4% | – | 6.1% |
| FCF Margin | ROE | ROA |
| 1.8% | 107.6% | 6.5% |
Analysis – Direct Digital Intrinsic Value Calculator
GoodWhale has conducted an analysis of DIRECT DIGITAL‘s financials, and have determined an intrinsic value of DIRECT DIGITAL share to be around $4.4. This calculation is based on our proprietary Valuation Line. Currently, DIRECT DIGITAL stock is traded at $10.9, a premium of 145.9%. This suggests that DIRECT DIGITAL may be overvalued in the current market and investors should exercise caution when considering purchasing DIRECT DIGITAL stock. More…
Peers
Its competitors include Engage:BDR Ltd, Quotient Technology Inc, and EQ Inc.
– Engage:BDR Ltd ($NYSE:QUOT)
Quotient Technology Inc. is a provider of digital coupons and media solutions. The company operates in two segments, Retailer Services and Advertising Solutions. The Retailer Services segment provides digital coupons, including online and in-store, to consumers through various channels, such as websites, apps, and social media. The Advertising Solutions segment offers a suite of performance-based marketing solutions that connect advertisers with consumers through targeted digital media. Quotient Technology Inc. was founded in 1998 and is headquartered in Mountain View, California.
– Quotient Technology Inc ($TSXV:EQ)
Enviro-Equipment, Inc. is engaged in the business of designing, manufacturing and marketing environmental products and services. The Company’s products and services include water and wastewater treatment systems, air pollution control systems and solid waste management systems. The Company’s products and services are used in a variety of industries, including municipal, industrial, commercial and institutional.
Summary
Direct Digital has been a popular stock among investors, but its recent performance has caused concern. A short report from White Diamond Research saw the stock’s price drop the same day the report was released. Analysts have noted that the drop in the stock price could be a sign of more losses to come, due to the company’s weak fundamentals.
Investors should take caution when considering investing in this stock, as any additional negative news could cause further losses. Overall, investors should be aware of the risks associated with investing in Direct Digital and closely monitor the company’s performance going forward.
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