Two fintech companies that skyrocketed last year only to come back down to earth are Upstart Holdings (NASDAQ: UPST) and LendingClub (NYSE: LC). Upstart is an emerging fintech that wants to change consumer lending. The company's goal is to make personal loans accessible to everyone -- including those not considered credit-worthy by traditional credit scores.
Being a "'platform" sounds well and good, but it's hard for fintechs involved in lending to escape the economics of banks.
Investors are concerned as inflationary pressures persist, interest rates rise, and geopolitical uncertainty is high. One stock caught up in all this selling is LendingClub (NYSE: LC). Since peaking in early November 2021, LendingClub stock has lost 74%.