360 DigiTech Is Priced For Disaster That Is Very Unlikely To Arrive
360 DigiTech is booming as new initiatives like their embedded finance model and SME lending are taking off.
The shift to a capital-light model is providing a secular boost to margins, which are already sky-high with a profit margin of 40%.
With the app restored to major app stores and other regulations and proposed regulations seemingly having more bark than bite, the shares are absurdly cheap.
There will be a $200M share buyback to boost, but given the regulatory uncertainties, this isn’t for the faint of heart.