Dough (ASX:DOU) share price surges another 43% on Wednesday. Here’s why

Douugh shareholders have been jumping for joy this week…

| More on:
Woman jumping for joy at great news with wide open country around her.

Image source: Getty Images

The Douugh Ltd (ASX: DOU) share price raced to a 5-month high following major gains over the last two days.

At Wednesday’s closing bell, the financial wellness app provider’s shares finished the day up 42.8% to 11 cents apiece. This means that in the past week alone, the Dough share price has accelerated more than 50% higher.

Record growth in October

In the hours before yesterday’s market open, Douugh released a positive trading update to the ASX.

The company highlighted record growth across its key platform metrics for the month of October. This was underpinned by targeted marketing activities and the launch of its in-app member-get-member-service (MGM).

As a result, the United States customer base increased by 42% month-on-month, with US revenue up 53% month-on-month. The introduction of the company’s new monthly subscription fee for new users helped boost revenue. Douugh said it was focused on continuing new app improvements to achieve higher activation rates and expand the share of wallet feature.

Total customers on the Douugh platform jumped to 63,162 users, which represents a lift of 26% on the prior month.

In addition, accumulated customer deposits rose to $15.5 million, up 25% month-on-month.

Total debit card spend on the platform leaped to $6.6 million, a 26% jump on September’s figures.

Douugh founder and CEO, Andy Taylor commented:

Our focus continues to be on improving activation rates and the winning of salary deposits to dramatically increase ARPU.

The paycheck is the catalyst of our flywheel and maximising the revenue opportunity in front of us. Therefore, investing in the brand and building trust with the user base is essential.

About the Douugh share price

Despite today’s gains, the Douugh share price has fallen by more than 60% over the past 12 months. Year-to-date, its shares are hovering around 35% below the January 1 level.

Based on the current share price, Douugh commands a market capitalisation of roughly $47.64 million.

Should you invest $1,000 in Douugh right now?

Before you consider Douugh, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Douugh wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Rede arrow on a stock market chart going down.
Share Fallers

Why the Integrated Research share price is cascading 15% today

Clouds gather around Integrated Research amid latest trading update.

Read more »

Technology Shares

Droneshield share price leaps 10% amid strong Ukrainian demand

The company's anti-drone systems are employed by militaries, law enforcement and private enterprises across the world.

Read more »

Two boys lie in the grass arm wrestling.
Technology Shares

Novonix share price fights to stay in the green on Monday

Tech is leading the ASX today.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Share Gainers

Why is the Nitro Software share price rallying 5%?

Tech shares are showing signs of life again on Monday.

Read more »

Three analysts look at tech options on a wall screen
Technology Shares

Why are ASX 200 tech shares having such a stellar start to the week?

ASX 200 tech shares are outperforming the benchmark today.

Read more »

A woman wearing glasses has an uncertain look on her face as she bites her lip, she's just read some news on her phone.
Technology Shares

What’s with the Dicker Data share price today?

Shares in the hardware, software and cloud distributor are up and down today.

Read more »

Three analysts look at tech options on a wall screen
Technology Shares

3 ASX tech shares we’re sticking with: Forager

Share prices have plunged, we know. But if the business is still performing then the market will catch up sooner…

Read more »

Opinions

Here’s why I think ASX-listed Appen could be a potential takeover target

Why I think Appen could find itself in the crosshairs of private capital...

Read more »