Marketwise Inc. (MKTW), the content and technology platform catering to self-directed investors, has been a rollercoaster ride for investors since its 2020 IPO. After a brief surge, the stock has tumbled, trading significantly below its initial offering price. Recent financial data paints a picture of a company grappling with declining revenue growth and shrinking profits. But is there more to the story? A deep dive into the numbers reveals a hidden signal, one that most analysts seem to be overlooking, potentially indicating a turning point for Marketwise.

The company's latest quarterly report (published on August 10, 2023) shows a 13.7% decline in revenue compared to the previous year. This, coupled with a 20% drop in quarterly earnings growth year-over-year, paints a bleak picture. Marketwise attributes these declines to a challenging macroeconomic environment impacting investor sentiment and subscription renewals.

However, amidst these concerning figures lies a fascinating trend: an aggressive share buyback strategy. Marketwise has consistently reduced its outstanding shares, going from approximately 25 million shares in 2021 to 39.4 million in the most recent quarter. This dramatic decrease suggests a strong belief in the company's intrinsic value, even as the stock price falters.

Outstanding Shares Trend (in millions)