Why is the Douugh (ASX:DOU) share price up 5% on Monday?

Why are Douugh shares rising today?
The post Why is the Douugh (ASX:DOU) share price up 5% on Monday? appeared first on The Motley Fool Australia. –

The Douugh Ltd (ASX: DOU) share price is on fire today. At the time of writing, Douugh shares are up a very healthy 5.26% to 10 cents a share. That comes as the broader ASX share market is experiencing a pretty nasty sell off, with the S&P/ASX 200 Index (ASX: XJO) currently down 0.85% to 7,286 points.

So why are Douugh shares bucking this trend? Well, it might have something to do with the ASX announcement the company made to the markets this morning.

Douugh rising

This announcement revealed that Douugh is launching its finance app for US residents who use the Android platform. The company tells us that this move will expand its market footprint to “an additional 46% of mobile users”. That’s based on research Douugh included that found Android now accounts for 45.99% of all mobile operating systems in the USA.

It has also been revealed that Douugh’s app has undergone “an extensive refresh and simplification of the architecture and user interface to improve overall usability and increase customer engagement”.

Further, Douugh also tells us that it “is now weeks away” from the launch of its robo-advisor wealth management product. This will reportedly be launched alongside the recently-announced MoneyPass ATM network. This will be “monetised” through a monthly “financial fitness membership fee”. Douugh tells us that “this will be the point in which [Douugh]  accelerates its customer acquisition run rate”.

Here’s some of what Douugh founder and CEO Andy Taylor had to say on all of these developments:

Following extensive market testing with our foundational user base, we are delighted to announce the launch of our Android app. We are now in a position to retarget the mass market and optimise our media channels to increase acquisition, and further reduce our CAC [Customer Acquisition Cost]…

We remain on track to aggressively turn up customer acquisition once this occurs… This has meant we have been able to significantly reduce the cash burn rate in the short term.

The Douugh Wealth offering will allow us to fully to deliver on our brand promise… and validate the revenue opportunity with the introduction of a monthly financial fitness membership fee which will underpin our international expansion.

About the Douugh share price

The Douugh share price has been an interesting one to watch since its IPO last year.

The company has had a shaky 2021 so far, and remains down more than 41% year to date, even after today’s move. It’s also down around 80% from its 52-week high of 49 cents a share. However, it is also still up almost 43% since its ASX debut back in October 2020.

On the current share price, Douugh has a market capitalisation of $34.87 million.

The post Why is the Douugh (ASX:DOU) share price up 5% on Monday? appeared first on The Motley Fool Australia.

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 nearly 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 May 24th 2021

More reading

Finally, some good news for the Afterpay (ASX:APT) share price
These are the 10 most shorted ASX shares

These ASX 200 healthcare shares are holding up in today’s sea of red

5 US shares investors will be watching on earnings this week

Oil Search (ASX:OSH) share price slides on shock leadership change

Motley Fool contributor Sebastian Bowen 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!