To The Moon

Tiger Brokers (NASDAQ: TIGR) saw its stock jump 20% following a strong earnings beat, marking a major milestone for the online brokerage platform. The company reported impressive fourth-quarter net profit growth of nearly 28 times year-on-year, driven by record-breaking performance metrics. Total client assets reached $41.7 billion, while Q4 revenue surged 77.3% year-on-year to $124 million. For the full year, Tiger Brokers reported $392 million in revenue, reflecting a 43.7% annual growth rate.

Strong Growth, but Is the Stock Still Overpriced?

While Tiger Brokers' fundamentals are improving, I remain cautious about buying at current levels. The stock has traded within a 52-week range of $3.10 to $14.48, and at its current price of around $9, I feel it may still be too expensive for an entry. Although the company is scaling rapidly, a strong earnings report doesn't always mean the stock will continue climbing.

Tiger Brokers (TIGR)

Great Product, But Not Necessarily a Great Investment

I am a satisfied user of the Tiger Brokers app, as I find it one of the best-designed investment platforms. While the company doesn't offer the lowest trading fees, it makes up for it with a user-friendly interface and numerous opportunities to earn stock vouchers through in-app events. However, being a happy customer doesn't necessarily make me a bullish investor.

No Dividends and Valuation Concerns

One major downside for me is that TIGR does not pay dividends, which makes it less attractive compared to other investment options that offer consistent income. Additionally, despite its strong revenue growth, Tiger Brokers still faces stiff competition from larger brokerage firms that may pressure its long-term profitability.

Waiting for a Better Entry Point

Although the stock has momentum, I prefer to wait for a better entry point before considering an investment. The ideal scenario would be a pullback that brings the price closer to its lower trading range, providing a higher margin of safety. For now, I will stay on the sidelines until I see a more compelling buying opportunity.

Conclusion

Tiger Brokers has delivered impressive financial results, and its stock price reflects strong investor enthusiasm. However, at current valuations and without a dividend yield, I am hesitant to buy. While I continue to enjoy using the platform, I will wait for a price correction before considering an investment.