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MarketWise (MKTW)
NASDAQ:MKTW
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MarketWise
(NASDAQ:MKTW)
Rating:55Neutral
Price Target:
$16.00
▼( -9.86% Downside)
MarketWise (MKTW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$290.75M
Dividend Yield4.68%
Average Volume (3M)36.72K
Price to Earnings (P/E)1.6
Beta (1Y)0.98
Revenue Growth-11.07%
EPS Growth953.01%
CountryUS
Employees439
SectorTechnology
Sector Strength75
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.41
Shares Outstanding2,647,468
10 Day Avg. Volume32,579
30 Day Avg. Volume36,720
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)-2.39
Price to Sales (P/S)0.00
P/FCF Ratio-0.62
Enterprise Value/Market Cap-0.18
Enterprise Value/Revenue-0.03
Enterprise Value/Gross Profit-0.15
Enterprise Value/Ebitda-0.20
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
MarketWise Business Overview & Revenue Model
Company DescriptionMarketWise (MKTW) is a leading financial research and advisory company that provides a wide range of subscription-based investment insights, analysis, and recommendations. The company operates in the financial services sector, targeting individual investors who seek expert guidance to make informed investment decisions. MarketWise's core offerings include newsletters, reports, and various digital content formats that cover diverse asset classes and investment strategies.
How the Company Makes MoneyMarketWise primarily generates revenue through its subscription-based model. The company offers a variety of subscription tiers, each providing different levels of access to its proprietary investment research and analysis. Key revenue streams include recurring subscription fees from a large base of individual investors and up-selling additional premium services or specialized reports. Significant partnerships with financial data providers and expert analysts enhance the company's offerings, contributing to its ability to attract and retain subscribers. Additionally, MarketWise may earn revenue through advertising and affiliate marketing related to its digital content.
MarketWise Financial Statement Overview
Summary
MarketWise demonstrates mixed financial health. While revenue and margins show some operational capability, the negative equity and high liabilities highlight significant financial risks. The positive operating cash flow is a strength, but recent negative free cash flow impacts liquidity.Income Statement
MarketWise's income statement shows fluctuating revenue trends with a decline in recent years. The gross profit margin is strong, but the net profit margin has been inconsistent due to volatility in net income, resulting in periods of significant losses. The EBIT and EBITDA margins indicate some operational efficiency, though they are not consistently high.45
Neutral
Balance Sheet
The balance sheet reveals a weak equity position with negative stockholders' equity, indicating financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, but high liabilities relative to assets suggest leverage concerns. This poses significant financial risk despite a manageable debt level.30
Negative
Cash Flow
MarketWise's cash flow situation shows some resilience with positive operating cash flow in most periods. However, recent negative free cash flow raises concerns about cash generation sustainability. The operating cash flow to net income ratio has been positive, highlighting operational cash flow adequacy despite net income volatility.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 405.36B | 448.18M | 512.40M | 549.18M | 364.18M | Gross Profit |
| 354.69B | 391.38M | 449.71M | 309.93M | 209.57M | EBIT |
| 88.99B | 51.80M | 87.28M | -967.59M | -538.69M | EBITDA |
| 104.40B | 58.21M | 89.86M | -964.92M | -535.96M | Net Income Common Stockholders |
| 93.11B | 1.78M | 101.17M | -953.88M | -537.90M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 97.88M | 155.17M | 158.57M | 139.08M | 114.42M | Total Assets |
| 259.51M | 396.56M | 442.51M | 421.55M | 284.81M | Total Debt |
| 4.37M | 5.81M | 7.32M | 8.21M | 8.90M | Net Debt |
| -93.51M | -149.36M | -151.26M | -130.87M | -105.52M | Total Liabilities |
| 477.44M | 685.50M | 740.89M | 826.82M | 1.21B | Stockholders Equity |
| -12.54M | -11.08M | -21.20M | -48.55M | -914.75M |
| Cash Flow | Free Cash Flow | |||
| -22.83M | 60.70M | 48.20M | 62.46M | 55.39M | Operating Cash Flow |
| -22.15M | 62.43M | 48.37M | 63.63M | 55.88M | Investing Cash Flow |
| -681.00K | -1.90M | -13.24M | -8.31M | -9.65M | Financing Cash Flow |
| -34.46M | -63.95M | -16.19M | -30.68M | -103.37M |
MarketWise Technical Analysis
Positive
17.75
Price Trends
12.59
Positive
12.09
Positive
11.89
Positive
Market Momentum
1.33
Negative
75.92
Negative
88.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKTW, the sentiment is Positive. The current price of 17.75 is above the 20-day moving average (MA) of 14.71, above the 50-day MA of 12.59, and above the 200-day MA of 11.89, indicating a bullish trend. The MACD of 1.33 indicates Negative momentum. The RSI at 75.92 is Negative, neither overbought nor oversold. The STOCH value of 88.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MKTW.
MarketWise Risk Analysis
MarketWise disclosed 47 risk factors in its most recent earnings report. MarketWise reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Purchases of shares of our common stock by us pursuant to our stock repurchase program may affect the value of our common stock, and there can be no assurance that our stock repurchase program will enhance stockholder value. Q4, 2024
2.
We have received written notice from Nasdaq that we are not in compliance with Nasdaq's minimum bid price requirements and if we are unable to regain compliance with Nasdaq continued listing standards, we could be delisted from The Nasdaq Stock Market, which would negatively impact our business, our ability to raise capital, and the market price and liquidity of our Class A Common Stock. Q4, 2024
3.
Our use of artificial intelligence technologies may not be successful and may present business, compliance, and reputational risks. Q4, 2024
MarketWise Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $11.41B | 10.19 | -7.05% | 2.95% | 7.46% | -10.52% | |
60 Neutral | $238.97M | ― | -33.75% | ― | 3.84% | -76.01% | |
58 Neutral | $217.67M | ― | -9.90% | ― | -6.52% | -2.19% | |
56 Neutral | $242.97M | 2.88 | 35.11% | 1.21% | 3828.94% | 129.01% | |
55 Neutral | $290.75M | 1.62 | -10.56% | 4.68% | -11.07% | 953.01% | |
53 Neutral | $231.91M | ― | -24.47% | ― | -8.39% | 7.79% | |
51 Neutral | $219.93M | ― | -24.28% | ― | -2.23% | 19.48% |
* Technology Sector Average
Performance Comparison
MKTW
MarketWise
17.48
-8.16
-31.83%
EGHT
8X8
1.67
-1.14
-40.57%
IMMR
Immersion
7.39
-1.92
-20.62%
EB
Eventbrite
2.25
-2.74
-54.91%
ONTF
ON24
5.38
-0.79
-12.80%
LAW
CS Disco
3.93
-2.33
-37.22%
MarketWise Corporate Events
Stock SplitRegulatory Filings and Compliance
MarketWise Announces Reverse Stock Split to Boost Compliance
Neutral
Mar 31, 2025
On March 31, 2025, MarketWise announced a 1-for-20 reverse stock split to address non-compliance with Nasdaq’s minimum bid price requirement. The reverse split, effective April 2, 2025, aims to increase the stock price to attract institutional investors and maintain Nasdaq listing. The company has already received shareholder approval and plans to adjust equity awards and authorized shares accordingly. The reverse split is expected to improve market perception and align the stock price with MarketWise’s market capitalization.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.