Anyone else surprised there wasn’t more marketing hype around Wealthfront’s IPO? Feels like it should’ve been louder given how mainstream it’s become as a “set it and forget it” cash + investing app.
Looking at the valuation, the P/E (at least from what I’m seeing) doesn’t look crazy compared to other fintech names. I wonder if the market is just pricing it conservatively because rates are expected to drift lower, and a chunk of their recent growth/earnings has probably been helped by the high-rate environment.
On the flip side, if things get ugly (recession risk, geopolitical stuff, general uncertainty), wouldn’t that actually help a product like this? People tend to park money in “safe” cash management / high-yield type accounts when they get nervous, instead of taking big swings.
Also saw they’re getting into mortgage lending. If rates come down and housing activity picks back up, that seems like it could be a meaningful growth lever. Between cash management + brokerage + mortgages, it starts to look like a pretty sticky ecosystem.
I already bought a few shares but wondering if it’s worth going in more aggressively.