Why Mogo Stock Jumped 10% on Monday

Mogo (TSX:MOGO)(NASDAQ:MOGO) stock started climbing once more after its massive fall on news that Bitcoin (CRYPTO:BTC) was on the rebound.

| More on:
Arrowings ascending on a chalkboard

Image source: Getty Images.

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Mogo (TSX:MOGO)(NASDAQ:MOGO) shares climbed over 10% on Monday from news that Bitcoin (CRYPTO:BTC) continued to rebound.

What happened?

Mogo stock rebounded after Bitcoin continued to climb past US$43,000, increasing its recovery from January lows. The cryptocurrency soared 20% from Thursday, on news that the United States new jobs were higher than estimates. Bitcoin wasn’t alone, as other cryptocurrency and digital assets shares rose as well.

Mogo stock had a recovery thanks to the investment into Bitcoin and other cryptocurrencies. The fintech platform invested in trading non-fungible tokens. So, for those wanting to expand their portfolios into cryptocurrency and digital assets, this should be an option.

So what?

Mogo stock went from a popular stock in 2021 to sink to insane levels of around $2 per share. The tech stock dropped during the crash in tech and other volatile companies, with COVID-19 and other economic concerns weighing on investors.

However, Mogo stock is now considered undervalued, especially considering the consensus target price of $12.17. That’s a potential upside of 308% as of writing! Yet the market is still a volatile place, so what should investors do as Bitcoin bounces back, and Mogo climbs with it?

Now what?

Analysts weighed in on Mogo stock recently, lowering their price targets but only slightly. The fintech stock remains in the double- digits, and this could climb higher should its NFT Trader interest increase. Mogo stock currently holds a 25% interest in NFT Trader and could acquire 25% more in 2022.

And while analysts may have trimmed the target, the outlook still remains strong. One analyst stated the only reason it was lowered was because of the completed equity raise of US$27.5 million for the NFT Trader stake.

Share of Mogo stock are down 75% in the last year and 34% year to date. Shares climbed 10% from market close on Friday and were up 4% as of writing.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bitcoin.

More on Tech Stocks

Various Canadian dollars in gray pants pocket
Tech Stocks

2 Ultimate Growth Stocks to Buy Below $50

These under-$50 stocks have multiple growth catalysts that point to a steep recovery.

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

This 1 Tech Stock Has Surged 50% in the Last 2 Months: Should You Buy?

While the entire tech sector is in a selloff, one Canadian tech stock has jumped 50% in two months. Is…

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Tech Stocks

3 Growth Stocks Worth Buying if You Can Handle Volatility

Are you an investor that isn’t scared of a little volatility? Here are three top picks!

Read more »

edit U-turn
Tech Stocks

Can Shopify (TSX:SHOP) and Lightspeed (TSX:LSPD) Recover Before 2023?

Shares of these omnichannel commerce-enabling companies are down over 80%, creating a solid buying opportunity.

Read more »

Tech Stocks

These 3 Cheap Stocks Would Be an Excellent Addition to Your Portfolio

Given their attractive valuation and solid growth potential, these three stocks would be an excellent addition to your portfolio.

Read more »

Growing plant shoots on coins
Tech Stocks

Market Correction: Don’t Miss These TSX Growth Stocks

Long-term investors shouldn’t miss this correction to accumulate top TSX growth stocks at prices well below their highs.

Read more »

Shopping and e-commerce
Tech Stocks

Shopify (TSX:SHOP): Why Did it Fall So Violently in 2022?

The TSX’s tech phenomenon fell sharply in 2022 due to slowing revenue growth, soaring inflation, and rising interest rates.

Read more »

Business success with growing, rising charts and businessman in background
Tech Stocks

3 Growth Stocks Worth Buying Today

With the volatility of the stock market, many investors continue to avoid growth stocks. However, here are three stocks worth…

Read more »