Douugh Share Price Spikes at the Open on US Debut (ASX:DOU)
After a meteoric debut, Douugh Ltd [ASX:DOU] has had a mixed month of trading.
This tiny neobank went from 6 cents per share to roughly 35 cents in just 10 days. An incredible rise in share price for investors that got in on the action early.
Since then the stock has been trading sideways for the most part. Sticking around this 30–35-cent mark.
As we discussed last week though, the company itself is progressing smoothly. Slowly building towards its short-term goals. And today it has achieved another one.
Douugh Coming to America
Douugh confirmed today that the US launch of its app is done.
Putting their neobank services out there to tap into the growing market of millennial and Gen Z users. An important milestone for the company after an extensive 18 months of testing.
Now it is up to Douugh to see just how receptive users are to the finished product. Even likening their growth ambitions to Tesla — the electric carmaker.
Here is how CEO Andy Taylor put it:
‘We want to build a global brand and platform business, and the U.S. is the place we need to start to allow us to build the scale needed to execute on our long-term business plan.
‘We are trying to do to banking what Tesla is doing to the automotive industry. We see open banking and autonomous AI technology to be the next frontier in fintech, and the biggest disruption to happen to such a stale industry vertical that has only really experienced linear improvement to date.’
Those are some bold claims and ambitions. Especially when contrasting a US$386 billion car company to that of a $103 million fintech small-cap.
But, at the very least, Taylor is certainly aiming high.
That optimism certainly spread to early traders this morning too. Seeing Douugh’s share price spike to 39 cents shortly after the ASX opened.
However, it has since fallen back down to 34 cents. Paring back on the early gains to deliver a 1.43% loss from yesterday’s close of trade.
Long term, it is clear this company has big plans. Whether or not they can achieve them though, is what investors will need to consider.
What’s next for the DOU share price?
As I said, the challenge now for Douugh is to attract as many users as possible. Tapping into its target demographic through offers, promotions, and whatever other means.
Whether these users will be receptive though, is still unclear. Although Taylor certainly isn’t wrong about a need for disruption in the banking and financial industries.
Fortunately, thanks to companies like Douugh and others, we know it’s coming.
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For Money Morning