Capital One - AI Stock Analysis

Analysis generated November 19, 2025

Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts. Founded in 1988 and based in McLean, Virginia, Capital One is known for its pioneering use of data and technology in financial services. The company operates in three main segments: Credit Card, Consumer Banking, and Commercial Banking.

Fundamental Analysis

The revenue for the last quarter was $53M, representing a substantial decrease of 99.68% compared to the previous quarter. This sharp decline indicates potential challenges in the company's financial performance. Compared to the same quarter last year, there is a 99.62% decrease, further compounding the concern about the company’s revenue generation abilities.

On a positive note, the net income for the last quarter was $80M, an increase of 101.87% compared to the previous quarter, indicating strong profitability growth. However, when compared to the same quarter last year, there is a 95.50% decrease in net income, which is concerning and suggests volatility in earnings.

EBITDA for the last quarter stood at $80M, marking a 101.63% increase from the previous quarter, signaling operational efficiency. Nevertheless, compared to the same quarter last year, EBITDA decreased by 97.35%, which raises alarm about sustainable operational performance.

The current P/E ratio is 69.08, which could be considered high, potentially indicating an overvaluation of the stock. Such a high ratio tends to foster a bearish outlook among investors.

Moreover, insider selling activity has been observed in the last couple of months, signaling a potentially bearish sentiment among the company's leadership.

Technical Analysis

The current stock price of Capital One is $202.40, which shows a 4.23% decrease from a month ago, a short-term concern for investors. However, compared to a year ago, the stock price has increased by 13.02%, suggesting a positive long-term trend.

The trend is currently bearish, supported by the SMA10 of 211.69 being lower than the previous SMA10 of 213.24, indicating a potential downward trend in the stock's price movement.

The RSI is at 62.6, indicating a neutral condition, neither strongly overbought nor oversold, suggesting a balanced trading posture at this time.

Alternative Data Analysis

Capital One has 2,893 open job positions on popular job boards, down by 22% in the last couple of months. This decrease may indicate efforts to improve margins or cut costs, which is not a positive sign for a growth-oriented company. Employee sentiment towards the business outlook is neutral.

Customer acquisition metrics show 138M visitors to the Capital One webpage, with no significant change in recent months. However, the estimated 17,000 daily downloads of their mobile apps have decreased by 17% in recent months, potentially indicating a decline in customer interest.

Customer engagement on social media shows 330,000 Instagram followers and 260,000 Twitter followers, with the Twitter follower count decreasing by 1% in recent months. This suggests a slight decline in customer interest and engagement.

AltIndex’s AI score for Capital One is 42, which represents a hold signal. This score combines various analytical methods to provide a general recommendation for the stock.

Conclusion

The analysis presents a mixed but cautious outlook for Capital One. While the company's net income and EBITDA show growth from the previous quarter, the significant declines in revenue and year-on-year comparison figures are alarming. The high P/E ratio suggests overvaluation, and insider selling implies a lack of confidence from executives.

Technically, the stock shows short-term bearish signals, though it has appreciated over a longer timeframe. The decrease in job postings and app downloads further signals potential challenges ahead.

Based on the available data, it is recommended to hold the stock for now. Investors should closely monitor upcoming quarters for improvements in the company's financials and evaluate market conditions before making a solid investment decision.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.