Wealthfront (WLTH) IPO Gets Tepid Response as Stock Rises 1% in Market Debut

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Shares of the innovative wealthiness absorption institution opened trading connected the Nasdaq (NDAQ) nether the ticker awesome WLTH astatine $14 a stock and ended the time astatine $14.19, a humble summation that showed lukewarm interest. Wealthfront priced its IPO astatine $14 per stock and is present valued astatine $2.7 cardinal based connected the closing terms Dec. 12.

Wealthfront picked a atrocious time to spell public, with each 3 of the large U.S. banal indices heavy successful the reddish arsenic concerns astir the wellness of the U.S. system and the artificial quality (AI) commercialized proceed to shingle investors’ assurance successful the existent rally.

Wealthfront operates successful the increasing wealthiness absorption industry, which has benefited from much Americans seeking retired fiscal proposal and assistance managing their banal portfolios. Founded successful 2008, Wealthfront caters chiefly to Millennial and Gen Z investors, offering professionally managed portfolios astatine debased costs.

The institution has seen explosive maturation successful its currency savings accounts. It charges 0.25% annually connected assets nether absorption for its robo-advisory concern service. Traditional quality advisors typically complaint 1% oregon much for the aforesaid offering. Wealthfront astir didn’t spell public. In 2022, Swiss slope UBS (UBS) announced it would get Wealthfront for $1.4 cardinal successful a woody that was aboriginal canceled.

Wealthfront is 1 of respective IPOs this twelvemonth that person fizzled retired of the gate. High-profile marketplace debuts from companies specified arsenic summons reseller StubHub (STUB) and online fiscal services institution Klarna (KLAR) person besides disappointed. Both STUB and KLAR stocks are trading beneath their IPO prices.

See each upcoming IPOs connected TipRanks’ IPO Calendar

It’s excessively aboriginal for immoderate analysts to person ratings oregon terms targets connected Wealthfront’s stock. So instead, we’ll look astatine different recently nationalist fiscal company, Klarna Group. The banal of Klarna has a statement Strong Buy standing among 16 Wall Street analysts. That standing is based connected 13 Buy and 3 Hold recommendations issued successful the past 3 months. The mean KLAR terms people of $47.53 implies 52.83% upside from existent levels.