Public Boards > The Lobby
Lending Club stock slide
havastat:
Lending Club stock closed Friday at $7.73, getting close to half its offering price and about a third of its high closing price, part of a continual slide in the stock price which has been going for several months down. Although the market is now in a general downturn, LC has been sliding significantly faster than the S&P 500 has been accelerating. Last week it fell nearly 10% in one day.
Thoughts.
ducks:
I think they face an uphill battle. Many lenders allow you to apply online now, there isn't really a differentiation.
Who do you go to when you want a loan? Would many people immediately think of Prosper or Lending Club? I don't think so. Banks still have branches everywhere, there are local banks and credit unions with which people tend to feel an affinity. There are payday lenders and title lenders that advertise heavily, whereas I've never seen a Lending Club ad.
Huge competition, little name recognition, no differentiation.
Urbi_et_Orbi:
--- Quote from: ducks on January 17, 2016, 09:16:49 pm ---I think they face an uphill battle. Many lenders allow you to apply online now, there isn't really a differentiation.
Who do you go to when you want a loan? Would many people immediately think of Prosper or Lending Club? I don't think so. Banks still have branches everywhere, there are local banks and credit unions with which people tend to feel an affinity. There are payday lenders and title lenders that advertise heavily, whereas I've never seen a Lending Club ad.
Huge competition, little name recognition, no differentiation.
--- End quote ---
Yeah, I have only seen or heard a handful of LC ads, whereas I am inundated with Prosper ads pretty much every day.
Come to think of it, the only LC marketing activity I have come across in recent memory was that sailboat named Lending Club 2:
http://www.sailingscuttlebutt.com/2015/07/15/lending-club-2-cuts-bait/
Fred93:
--- Quote from: ducks on January 17, 2016, 09:16:49 pm ---I think they face an uphill battle. Many lenders allow you to apply online now, there isn't really a differentiation.
Who do you go to when you want a loan? Would many people immediately think of Prosper or Lending Club? I don't think so. Banks still have branches everywhere,
--- End quote ---
Nice theory. However the facts are that LC's loan volume is DOUBLING EVERY YEAR.
Furthermore, lenders observe that the loan volume dries up in the last week of every quarter, and then pops like an opened floodgate at the beginning of the next quarter. This indicates that they intentionally slow down at the end of each quarter to control their numbers. In other words, they have enough borrowers to grow faster, but they regulate themselves to "only" doubling every year.
These facts are inconsistent with the story you're trying to paint.
ducks:
Doubling every year from a very low base. For how many years do you think they can continue?
Here's some food for thought: http://sentienttechnologies.com/lending-clubs-party-stock-will-collapse-another-software-entrepreneur-know/
Navigation
[0] Message Index
[#] Next page
Go to full version