Momentum Stocks in Focus: LendingClub Corp (NYSE:LC), Twilio Inc (NYSE:TWLO)

On Wednesday, Shares of LendingClub Corp (NYSE:LC), added -2.15% and closed at $6.38 in the last trading session. The last trading range of the stock ranges between $6.27 and $6.51. Lending Club (LC), the world’s leading online marketplace connecting borrowers and shareholders, recently declared financial results for the third quarter ended September 30, 2016 and established guidance for the fourth quarter. “I am very happy with our performance in the third quarter.  We actively reengaged with shareholders of all types to deliver on our plan and facilitate $2 billion in loan originations,” said Lending Club’s President and CEO, Scott Sanborn. “While we’ve made incredible progress, there is still work to be done. In the months ahead we are focused on increasing the diversity and resiliency of our funding mix, realigning our resources, and regaining our operating rhythm. Recently’s results, together with our new executive team, and the return of banks to our platform, give me confidence as we begin our planning for 2017.”

Third Quarter 2016 Financial Highlights

Originations – Loan originations in the third quarter of 2016 were $1.97 billion, up 1% contrast to the $1.96 billion we stated in the second quarter of 2016, but down 12% contrast to $2.24 billion in the same quarter last year. Lending Club has now facilitated nearly $23 billion in loans since our inception and as of the end of September 2016 manages a servicing portfolio of nearly $10.9 billion, up 42% contrast to the $7.7 billion at the end of the same period last year.

Operating Revenue – Operating revenue in the third quarter of 2016 was $112.6 million, up 10% quarter over quarter and down 2% contrast to the same period last year. Included in the third quarter revenue was about $11 million of cash incentives for the months of July and August recorded as contra-revenue. The company did not offer any cash incentives in September.

Net Loss – GAAP net loss was $(36.5) million for the third quarter of 2016, an improvement vs. the net loss of $(81.4) million stated in the second quarter of 2016, but down contrast to net income of $1.0 million in the same quarter last year. The results for the third quarter of 2016 were negatively affected by about $11 million in incentives paid to shareholders, and about $20 million of unusual expenses from events related to our board review disclosures earlier this year, retention expenses and incremental legal, audit and other professional fees.

Twilio Inc (NYSE:TWLO), jumped 6.68% and closed at $37.05 in the last trading session. The last trading range of the stock ranges between $35.00 and $37.84. The company’s Market capitalization is $3.55 Billion with the total Outstanding Shares of 87.13 Million. Twilio Inc. provides cloud communications platform that facilitates developers to build, scale, and operate communications within software applications through the cloud as a pay-as-you-go service in the United States and internationally. It offers programmable communications cloud software that facilitates developers to embed voice, messaging, video, and authentication capabilities into their applications through application programming interfaces.

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