Take Roku (NASDAQ: ROKU), LendingClub (NYSE: LC), and PayPal Holdings (NASDAQ: PYPL), for example, each down at least 75% from their highs. Roku may not look cheap from the standpoint of traditional value metrics. Shares are changing hands at 99 times trailing earnings, 64 times free cash flows, and four times sales.
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.