MOGO Financial

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Wondering what you guys think about Mogo Financial. They bought Moka (formerly Mylo) and might become a competitor to Wealthsimple in terms of commission-free trading and more.

https://betakit.com/mogo-to-acquire-moka-in-64-million-deal-as-it-looks-to-launch-free-stock-trading/

They also have a bitcoin rewards credit card.

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Asked on March 29, 2021 8:57 am
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HI Felix,

I have a hard time with MOGO simply because it is trying to be so many things all at once. Last summer, it wasn't even a crypto platform - then it changed into crypto and is now targeting to be a commission free trading account. I'm just weary about companies that try to do to much to fast - can't be an expert on everything.

It even launched bitcoin cash back mortgages recently. I really have no idea what to make of this company - it is a fintech, yet revenue dropped from $59M in 2019 to $44M in 2020. Analysts are expecting a slight bump to $51M this year and back to 2019 levels in 2022 but I am not sure if they are under-estimating the company.

IT really is a very difficult one to put a handle on as it has transformed itself so many times over the past few months. The Moka acquisitions seems like a good deal as it gives them access to a large customer base, and if they can be adopted in their digital wallet that is a good thing.

I'm just not prepared to give any real outlook on this one until I see a clearer strategy, and if it can execute on this strategy.

Mat

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Posted by Mathieu Litalien
Answered on March 29, 2021 5:33 pm