Why LendingTree (TREE) Is Going Up and Down

LendingTree Inc. (NASDAQ:TREE)’s history goes back to the late 90s when it used to serve customers looking for home mortgage loans by connecting them with different lenders matching their needs. The company made several acquisitions over the years to strengthen its core business. It currently operates an online marketplace, which offers a range of loans and other credit-based offerings to customers across the U.S. Like any other product, people can shop for financial services on the platform and choose the best option according to their needs.

The Charlotte, North Carolina-based company’s shares mostly traded flat over the past year. TREE stock started 2020 trading around $300. Its shares fell more than 14 percent on February 25 after reporting lower-than-expected quarterly revenue. Subsequently, its stock plummeted to a low of around $136 in April mainly over worries related to the economic impacts of Covid-19. However, TREE shares recovered their lost value afterward and touched a high price of around $360 in August.

A couple of months later, TREE stock once again fell below $300 in November after its biggest shareholder GCI Liberty decided to sell its entire holding in the company. Overall, TREE share price has increased just over 2 percent over the past year.

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LendingTree on Tuesday raised its revenue outlook for the fourth quarter amid the strong performance of its Home segment. The updated guidance sent its share up more than 16 percent in the previous trading session. The company now expects to report revenue in the range of $220 million to $222 million for Q4, as compared to its previous projection between $200 million to $215 million. The revised forecast is also in line with the consensus estimate of $213.3 million. Moreover, the company also lifted its variable marketing margin outlook to a range of $80 million to $82 million, versus its earlier projection of $72 million to $78 million.