Douugh (ASX:DOU) share price surges 9% after app launch

There's a new investing app on the block, offering brokerage-free investing to Australians.

| More on:
Happy woman looking through two doughnuts like binoculars

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Douugh Ltd (ASX: DOU) shares are surging in early morning trade after the release of its Goodments by Douugh investing app in the Australian market. At the time of writing, the Douugh share price is up 9%, trading at 12 cents after touching an intraday high of 13 cents near the market open.

Let's see why this investing app is boosting the Douugh share price following its launch in Australia.

Douugh launches free investing app in Australia

The software company is looking to leverage the record number of millennials entering the share market.

Douugh acquired the wealth management app Goodments for $1.5 million in February.

Goodments operates in Australia with more than 13,000 customers in its database. The company's wealth management app includes features that allow customers to invest in custom-built portfolios and fractionalised single shares.

Goodments by Douugh will retain the same features, providing Australian investors with brokerage-free trading in US shares and exchange-traded funds with as little as one dollar.

Douugh says that today's launch is a precursor to its flagship banking app launching in Australia early next year. The company says that there are currently more than 10,000 Australians now signed up to its waitlist.

The company's banking app has already launched in the United States, with strong momentum building for the platform. Douugh reported its first full quarter performance in the US, revealing a 259% increase in customers from 3,033 in December to 10,877 by the end of March.

What did management say?

Douugh Founder and CEO Andy Taylor commented on the recent millennial investing trend:

Young people realise buying property is becoming increasingly difficult, so they are turning to shares to make their money work harder and save to secure their futures.

Cryptocurrencies have also created interest in the younger generation, who want to invest with a long term strategy.

It's driving demand for wealth creation platforms like Goodments to simplify buying and selling shares, making it easy to get involved, easy to use and low cost. All the while being able to get exposure to the biggest global disruptive brands they know and love that are changing the world.

Douugh share price in 2021

The Douugh share price is down about 26% year to date. The company's shares are still trying to stabilise after surging as much as ~1,600% last year from a listing price of 3 cents to as high as 49 cents.

Kerry Sun has no position in any of the stocks mentioned.  The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Technology Shares

Why this beaten-up ASX All Ords stock just rocketed 31%

What is getting investors excited on Tuesday morning? Let's find out.

Read more »

Smiling man working on his laptop.
Technology Shares

3 reasons WiseTech shares could still be a buy

This investment could still do well over the long term.

Read more »

A corporate female wearing glasses looks intently at a virtual reality screen with shapes and lights representing Block shares going up today
Technology Shares

Is this buy-rated ASX 300 tech stock a future star?

Goldman Sachs has good things to say about this tech stock.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Why is everyone talking about ResMed shares?

It’s been a good year for ResMed shareholders. Let’s find out why.

Read more »

rugby player scores touchdown
Technology Shares

Are Catapult shares still a buy after their 145% touchdown in 2024?

What do the experts think could be next?

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Technology Shares

Why today is a big day for Pro Medicus shares

Records are being broken by this share on Monday. What's going on?

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Technology Shares

Guess which ASX tech stock is jumping 13% amid 'financial transformation journey'

What is getting investors excited? Let's find out.

Read more »

An unhappy man in a suit sits at his desk with his arms crossed staring at his laptop screen as the PointsBet share price falls
Technology Shares

Should you buy WiseTech shares after the selloff?

Let's see what analysts are saying about this beaten down tech stock.

Read more »