The online broker released a roadmap earlier this year that highlights its expansion plans.
The post The SelfWealth (ASX:SWF) share price is up 23% in a week. What’s next? appeared first on The Motley Fool Australia. –
The SelfWealth Ltd (ASX: SWF) share price has had a stellar past week.
In the last 7 days, shares in the online broker have stormed 23% higher.
Let’s take a look at what’s been fuelling the SelfWealth share price.
What’s been fuelling the SelfWealth share price?
SelfWealth has not released any notable news in the past week that could explain the bullish price action.
However, the online broker was on the receiving end of some very positive market commentary.
In a recent interview, fund manager Emanuel Datt highlighted that SelfWealth has the potential to become the next Afterpay Ltd (ASX: APT).
According to the fundie, the online broker has the potential to expand its platform to offer other financial services.
Prior to its recent rally, the SelfWealth share price was on the slide after releasing its full-year report for FY21.
How did SelfWealth perform in FY21?
Late last month, shares in SelfWealth were hammered despite delivering record results across key performance metrics.
Highlights from the company’s FY21 results included:
Revenue of $18.4 million, up 135% year on year
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of $0.5 million compared to a $2.4 million loss in FY20
Net loss of $0.6 million compared to a loss of $3 million in FY20
95,189 active traders on the platform, up 105%
Gross profit margin increased to 41.4% from 33.4%
SelfWealth highlighted the release of various products and features for FY21.
These included adding ASX announcements to the platform, flat-fee US trading and the launch of iOS and Android mobile apps.
In addition, SelfWealth noted an improvement in its profitability, with a positive operating cash flow of $1.1 million in FY21.
What’s next for SelfWealth?
SelfWealth is a budget platform that offers retail investors a flat fee of $9.95 for every trade on the ASX.
In addition, the company also offers auxiliary services such as a community share market forum and a premium forum for $20 per month.
The online broker also released a roadmap earlier this year that highlights the company’s expansion plans.
Some planned features include members funding their ASX accounts in real time and live pricing.
Despite bouncing strongly in the past week, shares in SelfWealth remain more than 22% lower since the start of 2021.
At the time of writing, the SelfWealth share price has dropped 4.65%.
Should you invest $1,000 in SelfWealth right now?
Before you consider SelfWealth, 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 SelfWealth 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 August 16th 2021
Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.