Wealthfront Corporation Faces Investigation After 37.1% Share Price Drop Post-IPO
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Businesswire
- Poor IPO Performance: Wealthfront completed its IPO on December 12, 2025, at $14.00 per share for 34,615,384 shares, but has since seen a 37.1% decline in share price, indicating market concerns about its future performance.
- Deteriorating Financials: In its first quarterly report released on January 12, 2026, the company reported net deposit outflows of $208 million, a stark contrast to the $874 million inflows from the previous year, reflecting a significant drop in customer confidence.
- Management Strategy Shift: CEO David Fortunato emphasized the strategic importance of the newly launched home-lending business during the earnings call, claiming it would provide protection for the company, despite his personal 95.1% stake in that business raising potential conflict of interest concerns.
- Impact of Stock Volatility: Following the earnings report, the stock price dropped 16.8% from $12.59 to $10.47, undermining investor confidence in the company's future and potentially leading to further legal scrutiny.
Analyst Views on WLTH
Wall Street analysts forecast WLTH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WLTH is 16.47 USD with a low forecast of 12.83 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 8.800
Low
12.83
Averages
16.47
High
20.00
Current: 8.800
Low
12.83
Averages
16.47
High
20.00
About WLTH
Wealthfront Corporation is a technology company that built a financial solutions platform for digital natives. Its platform is designed to address the needs of the wealth builders within these generations. Its technology-driven financial solutions help clients turn savings into long-term wealth. Its suite of products, including cash management, investment advisory, borrowing and lending, and financial planning solutions, address the diverse financial needs of its clients regardless of the economic environment. It offers financial products that span a risk spectrum, designed to be delivered through Web and mobile channels. It offers cash management, investment advisory, borrowing and lending, and financial planning. Its proprietary technology includes Omnibus Brokerage Platform, Fully Integrated Brokerage and Cash Management, Financial Data Aggregation, and Data and Analytics Platform. Its omnibus brokerage platform is the foundation for its investing and cash management solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
