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Rde Inc (GIFT)
:GIFT
US Market

RDE (GIFT) AI Stock Analysis

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GI

RDE

(NASDAQ:GIFT)

Rating:35Underperform
Price Target:
GIFT's overall score is driven by financial instability and a challenging valuation outlook. Despite some technical indicators not showing immediate selling pressure, the company's financial performance and valuation issues pose significant risks. Without positive earnings and dividends, GIFT’s appeal is limited, and it faces ongoing operational challenges.
Positive Factors
Acquisition Benefits
The acquisition of TakeOut7 expands the company's offerings and offers strong cross-sell opportunities with Restaurant.com.
Growth and Brand Recognition
Analyst expects growth to accelerate with increased brand awareness, which could lead to multiple expansion.
Revenue Growth
Revenue growth is expected to be driven by increased sales and marketing efforts, brand recognition, and cross-selling opportunities.
Negative Factors
Profitability Concerns
A discount to the peer group is warranted as GIFT is not yet profitable and had low to negative growth in the past two years.
Valuation Challenges
GIFT trades at an EV/revenue multiple of 0.3x our '26E revenue vs. a peer group average of 1.3x, and a discount is warranted as GIFT is not yet profitable and had low to negative growth in the past two years.

RDE (GIFT) vs. SPDR S&P 500 ETF (SPY)

RDE Business Overview & Revenue Model

Company DescriptionRDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.
How the Company Makes MoneyRDE (GIFT) generates revenue primarily through direct sales of its personalized gift products via its e-commerce platform. The company's key revenue streams include sales from individual customers and corporate clients seeking customized gifting solutions for events and promotions. Additionally, RDE (GIFT) collaborates with strategic partners and suppliers to enhance its product offerings and expand its market reach, contributing to its earnings.

RDE Financial Statement Overview

Summary
GIFT faces significant financial challenges. Despite some improvements in revenue and equity position, the company continues to grapple with profitability issues, high leverage, and negative cash flows. Persistent negative margins and cash flow deficits suggest ongoing difficulties in operational efficiency and financial stability.
Income Statement
35
Negative
The company's revenue shows volatility with a recent decrease from 2022 to 2023, followed by slight recovery in 2024. Gross profit margin improved from 12% in 2023 to 14.8% in 2024, but net profit margin remains negative due to significant losses. The EBIT and EBITDA margins also indicate ongoing operational challenges with consistent negative margins, reflecting issues in managing operating costs.
Balance Sheet
25
Negative
The balance sheet reflects a high debt burden relative to equity with a debt-to-equity ratio of 0.47 in 2024, though improved from significantly negative equity in past years. The company has shown improvement in equity position from negative in prior years to positive in 2023 and 2024. However, the equity ratio of 58.5% in 2024, while positive, is still indicative of potential financial instability.
Cash Flow
30
Negative
Cash flows are concerning with consistently negative free cash flow, though the free cash flow has improved in 2024 compared to previous years. The operating cash flow to net income ratio remains negative, indicating that the company struggles to generate cash from its operations. The free cash flow to net income ratio is also negative, highlighting difficulties in sustaining operations without external financing.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2019
Income Statement
Total Revenue88.93M86.66M97.01M3.32M4.14M
Gross Profit13.14M10.44M10.48M2.93M1.55M
EBITDA-14.47M4.39M-898.00K-4.24M-10.12M
Net Income-18.83M-125.00K-8.32M-4.99M-13.98M
Balance Sheet
Total Assets35.48M39.76M13.14M2.51M587.00K
Cash, Cash Equivalents and Short-Term Investments2.32M4.10M2.04M1.93M216.00K
Total Debt9.69M9.41M33.29M3.62M4.68M
Total Liabilities14.72M15.44M34.45M5.53M8.41M
Stockholders Equity20.76M24.32M-21.31M-3.02M-7.83M
Cash Flow
Free Cash Flow-2.55M-1.44M-1.10M-1.26M-706.00K
Operating Cash Flow-2.55M-541.79K-102.41K-1.26M-706.00K
Investing Cash Flow0.00-900.00K-1.00M0.000.00
Financing Cash Flow2.03M1.46M409.33K2.59M805.00K

RDE Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.39
Price Trends
50DMA
1.65
Negative
100DMA
1.70
Negative
200DMA
1.61
Negative
Market Momentum
MACD
-0.07
Negative
RSI
39.62
Neutral
STOCH
51.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIFT, the sentiment is Negative. The current price of 1.39 is below the 20-day moving average (MA) of 1.48, below the 50-day MA of 1.65, and below the 200-day MA of 1.61, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 39.62 is Neutral, neither overbought nor oversold. The STOCH value of 51.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GIFT.

RDE Risk Analysis

RDE disclosed 55 risk factors in its most recent earnings report. RDE reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
If CardCash is not able to achieve profitability within the next few years, our shareholders will have experienced unnecessary dilution, and our ability to achieve our business plan could be significantly delayed or threatened. Q4, 2023
2.
We have identified material weaknesses in our disclosure controls and procedures and internal control over financial reporting. Q4, 2023

RDE Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
kr14.48B3.4116.68%6.43%-7.67%47.50%
MNMNY
56
Neutral
$44.50M-48.12%345.36%-650.95%
54
Neutral
$79.75M-28.67%-36.56%72.58%
52
Neutral
$71.45M-39.21%22.98%69.10%
52
Neutral
$44.18M-28.40%7.16%-90.90%
CCCCG
47
Neutral
$61.39M-16.65%105.31%95.66%
35
Underperform
$39.89M-81.15%2.05%-171.14%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GIFT
RDE
1.36
-2.72
-66.67%
IZEA
IZEA Worldwide
2.61
0.37
16.52%
CCG
Cheche Group
0.75
-0.01
-1.32%
MNY
MoneyHero Limited
1.07
-0.78
-42.16%
BZFD
BuzzFeed
2.07
-0.74
-26.33%
PODC
Courtside Group Inc
2.33
0.93
66.43%

RDE Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
RDE Terminates $10 Million Stock Purchase Agreement
Neutral
Feb 5, 2025

On February 3, 2025, Giftify, Inc. announced the termination of a Stock Purchase Agreement (SPA) with ClearThink Capital Partners, which was initially established on December 16, 2024. This agreement allowed for the potential sale of up to $10 million in stock. The decision to cancel the equity line of credit was made effective February 4, 2025, by mutual consent, which reflects Giftify’s strategic reassessment of its financial arrangements.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 26, 2025