From Nasdaq
June 27, 2025 01:36 am:

Fintech company Chime Financial (NASDAQ: CHYM) went public two weeks ago, with shares surging 40% above the IPO price of $27 before correcting to $29. The recent sell-off may be attributed to the Senate passing a stablecoin bill, posing a threat to Chime’s neobank model.

Stablecoins offer competition by combining the stability of fiat currency with crypto benefits. Chime’s focus on low-cost financial services for younger, tech-savvy users may make it more vulnerable to stablecoin adoption. The reliance on interchange fees and lack of a chartered bank status pose additional challenges.

Chime’s stock faces competition in the commoditized neobanking space, where customer loyalty is hard to maintain. At a current price of $32, Chime trades at about 6x trailing revenues, similar to profitable rival SoFi. Economic slowdowns and reliance on transaction fees also present risks for Chime’s valuation and growth potential.

Read more at Nasdaq: Why Chime Stock Is Back To Its IPO Price