LendingTree (NASDAQ: TREE) is a credit broker. The company matches lenders and creditors of various financial instruments. To do this, TREE operates many online platforms that serve several business niches. The ultimate goal for the company is to reduce friction between borrowers and lenders. In my view, its online platforms and unified offering create a unique value proposition that can eventually constitute TREE’s competitive advantage. However, my valuation of the company suggests that TREE is currently overpriced. Thus, it’s best to wait for a pullback before initiating a position.
Source: fitsmallbusinesses.com.