HomeMarket NewsSmall CapsThe Downward Spiral of UP Fintech: Analyzing the Decrease in Stock Value

The Downward Spiral of UP Fintech: Analyzing the Decrease in Stock Value

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UP Fintech Holding LimitedΒ TIGR stocks are taking a hit in the market following the fourth-quarter FY23 results announcement.

Revenue Report

Total revenues witnessed a modest 9.6% increase year-over-year, reaching $70.0 million, but total net revenues faced a decline of 4.7% down to $54.0 million.

Impacted Segments

Segments:Β Commissions logged $22.0 million, a decrease of 11.9% year-over-year due to lowered trading volume. Financing service fees surged to $3.2 million, up by 18.4% year-over-year primarily due to heightened interest rates.

Boosted Income Streams

Interest income bloomed to $40.0 million, a 31.3% rise year-over-year driven by intensified margin financing and securities lending activities.

User Growth & Financials

During the fourth quarter, the firm secured 39,034 new funded accounts, marking a 42.8% leap year-over-year, pushing the annual total to 123,110, surmounting the projected 100,000. Total account balance rocketed up by 118.5% year-over-year to $30.6 billion. Customer deposits climbed by 15.8% year-over-year to 904,600.

The total margin financing and securities lending balance escalated by 17.9% year-over-year to $2.4 billion.

Financial Letdown

Non-GAAP net income per ADS stumbled to $0.007, falling short of the anticipated $0.07.

CEO Outlook & License Approval

Wu Tianhua, Chairman and CEO remarked on the introduction of the Combo Option Strategy feature in the fourth quarter, enabling users to execute multi-leg options trades using net margin calculation. Additionally, in January 2024, Hong Kong SFC granted an uplift to the Type 1 License, allowing the firm to provide Virtual Asset dealing services to Professional Investors, positioning them as one of the initial mainstream online brokerage firms in Hong Kong to receive approval for such a license upgrade.

Stock Downtrend

Price Action: TIGR shares have plummeted by 10.1% to $4.02 in the latest updates on Tuesday.

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