Online Lenders’ Shares Hurt by Expected Revenue-Growth Slowdown
- LendingClub, On Deck decline following earnings reports
- ‘Not a time to be chasing loan origination,’ analyst says
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Online lenders are trading rapid growth for the bottom line -- and investors aren’t pleased.
The companies, which reported record revenue for 2018, are pointing to rising interest rates as a reason to tread cautiously this year. Higher borrowing costs mean fewer people have an incentive to refinance their debt, leading to lower loan volume for the firms.