10 Worst High-Risk High-Reward Growth Stocks To Buy

4. Dave Inc. (NASDAQ:DAVE) 

Beta (5Y Monthly): 3.53

3-Year Sales Growth: 31.39%

Number of Hedge Fund Holders: 27

Analyst Upside Potential: 49.01%

Dave Inc. (NASDAQ:DAVE) operates as a neobank and fintech company focused on providing accessible financial services to underserved consumers. The company offers short-term, 0% interest loans up to $500 through its ExtraCash product. Moreover, it provides checking accounts with features like early direct deposit and automatic savings tools. It relies on AI-driven underwriting using transactional cash flow data to assess creditworthiness, enabling broader financial inclusion.

On May 7, Devin Ryan from JMP Securities reiterated a Buy rating on the stock, with a price target of $135. Dave Inc. (NASDAQ:DAVE) surpassed $100 million in quarterly revenue during the fiscal fourth quarter of 2024. The company also achieved over $30 million in quarterly adjusted EBITDA for the first time. Management noted that they improved credit underwriting using the V5 Cash AI model, which improved credit risk separation and reduced delinquency rates.

Looking ahead, management plans to sustain growth by expanding marketing investments while maintaining profitability. It also anticipates further ARPU growth in 2025 due to the new fee structure and increased engagement with ExtraCash and Dave Card. It is one of the worst high-risk high-reward growth stocks to buy.