Core Viewpoint - Wealthfront's stock price declined over 16% following a report of decreased customer deposits, despite overall asset growth and revenue increases. Group 1: Financial Performance - Total assets on Wealthfront's platform increased by 21% year over year to $92.8 billion as of October 31, driven by a 20% rise in funded client accounts to 1.38 million [2] - Wealthfront's revenue rose 16% year over year to $93.2 million, with EBITDA climbing 24% to $43.8 million [4] Group 2: Asset Management - Cash management assets increased by 14% to $47 billion, supported by high yields on online savings products and FDIC insurance for individual accounts [2] - Investment advisory assets surged by 31% to $45.8 billion, aided by rising stock prices and client fund transfers from savings to investment accounts [3] Group 3: Deposit Trends - Wealthfront experienced $208 million in net deposit outflows in December, contrasting with net inflows of $874 million in December 2024 [5] - The decline in cash management assets largely offset the increase in investment advisory assets, raising concerns among investors about the sustainability of asset growth [5]
Why Wealthfront Stock Dropped Today
The Motley Fool·2026-01-14 01:13