Chime Financial, Inc. (CHYM) shares surged 5.01% during intraday trading on Wednesday, as investors positioned themselves ahead of the company's highly anticipated second-quarter earnings report.
The rally comes amid expectations of strong revenue growth of approximately 21.3% year-over-year to $640 million, with consensus estimates pointing to a near breakeven earnings per share of -$0.01. The company's recent announcement of a workforce reduction of around 150 employees, aimed at achieving AI-driven operational efficiency and a leaner organizational structure, has further fueled optimism about the company's cost management and future profitability.
Multiple institutions maintain buy ratings on the stock, with an average target price of approximately $30, suggesting additional upside potential beyond the current levels.