By Kuldip K. Ambastha
LendingTree, Inc. (TREE) is a well-known online loan marketplace operating in the USA. On the trading day of Thursday, November 5, 2020, the company’s stock had a -15.4% loss due to 3Q2020-related news. During 3Q2020, a quarterly loss figure of -$0.26 per share was seen. In contrast, one year ago during 3Q2019 a quarterly earnings figure of +$2.25 per share was seen. For 4Q2020, company executives have provided revenue and earnings guidance which disappointed Wall Street. Specifically, a $200-$215 million estimated revenue range and $13-$18 million estimated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) range were disclosed for 4Q2020. Both of these ranges show that the shorter-term outlook for the company has been affected by lessened demand due to the coronavirus pandemic. Fewer consumers are seeking out loans from lenders via LendingTree. Thus, the stock is currently struggling and has an unclear future at this time despite its past successes.
Keywords – LendingTree, Inc., LendingTree, TREE, COVID-19, COVID, coronavirus, pandemic, online loan marketplace, consumers, lenders, loans, financing, fee income, revenues, earnings, EBITDA, Earnings Before Interest, Taxes, Depreciation, and Amortization, Wall Street, United States, United States of America, USA.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in TREE.
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