How Green Dot Shares More Than Doubled in the First Half of 2020

Shares of financial technology company Green Dot (NYSE: GDOT) rose 110.6% in the first half of 2020, according to data from S&P Global Market Intelligence. Don't get too excited about these massive gains, though -- Green Dot is more of a turnaround story than a skyrocketing growth stock.

Green Dot's stock price plunged 71% lower in 2019, hamstrung by a series of disappointing earnings reports. The company set itself up for short-term trouble by investing in expensive product ideas such as cash-back accounts yielding 3%. They might have the power to generate stronger growth in the long run, but only if Green Dot survives the difficult ramp-up period.

The company appointed a new CEO in the middle of the COVID-19 crisis. Dan Henry brings a wealth of relevant experience to his new job, and he has the backing of activist investor firm Starboard Value, which used a 9% ownership stake to force a leadership change in 2020.

Source Fool.com