GDOT - Green Dot stock slips after Barclays downgrade as clearer profit view is delayed

• Green Dot ( NYSE: GDOT ) shares dropped 3.1% in Monday late morning trading after Barclays analyst Ramsey El Assal downgraded the fintech bank to Equal Weight from Overweight after the company's strategic shift is costing more than originally expected.
• "It has become clear that the investment and time required to move the company away from its legacy model and toward a more crystallized digital strategy is more substantial than we originally expected," El Assal wrote in a note to clients. He had expected that Green Dot ( GDOT ) would see acceleration of revenue and profitability in 2023, but now investors will have to wait longer "to gain a clearer view of GDOT's normalized growth and profitability profile."
• The company is pursuing a number of growth opportunities including a pivot into digital wallets with its Go2Bank strategy and increased penetration of the white-label BaaS (Backend as a Service) business.
• El Assal's Equal Weight rating agrees with the Quant rating of Hold and diverges from the average Wall Street rating of Buy.
• Take a look at management's commentary on Q2 and on 2022 guidance in its Aug. 5 earnings call.

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