New York, Jan 12, 2026, 15:40 ET — Regular session
Shares of Dave Inc (DAVE.O) dropped 8.8% to $218.29 in late-afternoon trading Monday, after earlier fluctuating between $212.10 and $247.74. The fintech’s stock had closed Friday at $239.35, with roughly 1.1 million shares changing hands by mid-afternoon, according to market data.
The drop came as investors backed away from credit-sensitive stocks following U.S. President Donald Trump’s call for a one-year cap on credit card interest rates at 10%, starting Jan. 20. On the docket for Tuesday is the U.S. consumer price index (CPI), a crucial inflation measure that could shift expectations around Federal Reserve rate cuts. “We need to see some type of action before the market will actually react to it in a meaningful way,” said Jordan Rizzuto, chief investment officer at GammaRoad Capital Partners.
U.S. stocks were creeping up, the Nasdaq gaining roughly 0.5% and the S&P 500 reaching an intraday record, despite weakness in the financial sector. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, noted the investigation headline involving Fed Chair Jerome Powell had been “telegraphed,” so the market shrugged it off.
Dave’s slump mirrored a wider slide in consumer-finance and fintech stocks. Upstart fell roughly 7.0%, Affirm dropped 6.7%, and SoFi declined 2.8%. LendingClub, however, saw minimal movement.
Dave positions itself as a neobank and fintech platform, offering products like ExtraCash — a 0% interest overdraft through a banking partner — and Dave Checking, a digital deposit account. In 2024, it reported roughly $347 million in revenue and net income near $58 million, according to LSEG data on the Reuters company page.
Monday’s moves can hit smaller consumer fintechs hard, as changes in rate expectations swiftly affect perceptions of funding costs and borrower strain. When sentiment turns sour on lenders, selling often goes too far.
Legal and regulatory clouds loom as well. In late 2024, the U.S. Justice Department lodged a complaint and launched a civil enforcement action against Dave and its CEO, Jason Wilk. They allege the company deceived users over cash advances and imposed hidden fees. Dave pushed back, calling many of the claims inaccurate and pledging a defense. (Reuters)
Another risk is that policy chatter hardens into actual rules. A rate cap designed for credit cards won’t necessarily apply to every consumer-finance product. Yet investors often sell off the entire sector upfront, then figure out the specifics afterward.
Investors now turn to Tuesday’s CPI data and the start of major U.S. bank earnings, with JPMorgan Chase leading off on Jan. 13. These updates could shift views on interest rates and consumer credit trends in the coming weeks. (Reuters)
