Chime Financial, Inc. (NASDAQ: CHYM) saw its stock soar 5.32% in early trading on Monday, as investors appear to be reassessing the neobank's growth potential following its recent initial public offering (IPO). This surge comes after a volatile first few days of trading for the fintech company, which went public last week.

Chime, a branchless banking platform, initially saw strong demand during its IPO, with shares opening at $43, well above the $27 offering price. However, the stock experienced a pullback in subsequent trading sessions, closing at $34.79 on Friday. Today's rally suggests that investors may be finding new confidence in Chime's long-term prospects.

The renewed interest in Chime stock appears to be driven by several factors highlighted in recent analyses: 1. Strong user growth: Chime currently serves 8.6 million active accounts, representing just 3% of its target market of 196 million Americans earning less than $100,000 annually. 2. Accelerating revenue growth: The company's revenue increased by 31% last year, with growth further accelerating to 32% in the first quarter of 2025. 3. Improving financials: Chime achieved operating profitability for all of 2024 and reached actual profitability in Q1 2025. 4. High engagement: Customers use an average of 3.3 Chime products, with two-thirds considering Chime their primary banking account.

While Chime's valuation remains high compared to some established fintech players, today's stock movement suggests that investors are becoming more comfortable with the company's growth trajectory and market potential. As Chime continues to expand its user base and potentially target more affluent customers, it could justify its current valuation and attract further investor interest.