LendingTree, Inc. (NASDAQ: TREE) – Rebuilding Growth in the Digital Finance Marketplace
LendingTree, Inc. (NASDAQ: TREE) operates a leading online platform that connects consumers with lenders for mortgages, personal loans, credit cards, insurance, and more. Often referred to as the “Expedia of personal finance,” LendingTree earns referral fees when users apply for and are approved for financial products.
While 2022–2023 were tough years due to rising interest rates and compressed lending margins, TREE has restructured its business and is now well-positioned for operating leverage as the credit cycle turns.
The Bigger Picture: LendingTree’s Strategic Role
TREE is not a lender—it’s a tech-driven marketplace. It aggregates offers from dozens of banks and financial providers, helping consumers find competitive rates while helping financial institutions acquire customers efficiently.
As consumer credit demand normalizes and rate hikes slow, LendingTree is poised to benefit from higher approval rates, rising traffic, and margin improvement across its core verticals.
Key Catalysts Driving LendingTree’s Setup
- Operating Cost Restructuring: TREE has significantly cut SG&A costs and streamlined operations, improving adjusted EBITDA margins.
- Improved Credit Conditions: As lenders regain risk appetite, personal loan and credit card originations are showing signs of life—boosting TREE’s monetization rates.
- Home Equity Boom: With mortgage refinancing down, home equity loans are rising—an area where TREE has strong positioning.
- Debt Marketplace Growth: Consumers continue to seek ways to consolidate high-interest credit card debt—a driver of personal loan activity.
- Low Valuation: TREE is trading at a fraction of its historical revenue multiples, despite improving profitability and a pivot to positive cash flow.
Technical Analysis: LendingTree’s Reversal Watch
- Moving Averages: TREE recently reclaimed its 50-day moving average and is testing resistance at the 200-day—a bullish sign of reversal.
- MACD: A fresh bullish crossover has appeared, with positive histogram expansion.
- RSI: RSI sits at 55, showing improving momentum with room to run before overbought conditions.
- Base Formation: The stock has formed a rounded base between $18–$24—clearing $25 could trigger a technical breakout.
- Volume Trends: Accumulation volume has increased, especially on earnings-related rallies—indicating growing investor interest.
Potential Risks to Consider
- Rate Sensitivity: Rising interest rates directly impact application volume and approval rates across TREE’s product categories.
- Competition: Faces competition from Credit Karma, NerdWallet, and direct-to-consumer fintech lenders.
- Macro Uncertainty: Consumer credit trends remain sensitive to inflation, job markets, and lending standards.
LendingTree is a classic turnaround setup: a leaner business, improved margins, and upside tied to a credit market recovery. As the macro backdrop improves and fintech adoption continues, TREE may offer meaningful upside from its discounted base.