Wealthfront Shares Plummet Post-IPO Amid Investigation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Businesswire
- IPO Overview: Wealthfront completed its IPO on December 12, 2025, issuing 34,615,384 shares at $14.00 each; however, the stock price has since experienced significant declines, raising concerns among investors.
- Deteriorating Financials: On January 12, 2026, Wealthfront reported net deposit outflows of $208 million, a stark contrast to the $874 million inflows from the previous year, indicating a liquidity crisis for the company.
- Management Strategy Shift: CEO David Fortunato emphasized the strategic importance of the new home-lending business during the earnings call, asserting it would shield the company from falling interest rates, while revealing his 95.1% stake in the lending business and potential revisions to the ownership structure.
- Stock Price Impact: Since the IPO, Wealthfront's stock has plummeted by $5.20, or approximately 37.1%, from $14.00 to $8.80, reflecting market concerns regarding the company's future prospects.
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: 8.790
Low
12.83
Averages
16.47
High
20.00
Current: 8.790
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.
