Chime Financial's Valuation: Is the Recent Price Jump Justified?

Chime Financial (CHYM) shares have surged 13% in the past week, driven by its digital banking business. Despite this, the stock's 1-month return stands at 27.8%, recapturing some momentum after a challenging year-to-date performance. Chime's price-to-sales ratio of 4x is higher than the industry average and peer average, signaling high expectations for future growth. However, ongoing net losses and reliance on investor optimism remain significant risks.