Donald Trump's Wednesday morning victory sent crypto stocks soaring. Other forms of alternative finance saw a boost too.
Among the big gainers were startups Dave Inc. and MoneyLion, banking apps that offer $500 cash advances to new users. Both companies have been in hot water with regulators, but their stocks surged as investors widely expect Trump-and the Consumer Financial Protection Bureau chief he appoints-to take a more hands-off approach to regulation.
The FTC sued Dave Tuesday evening, alleging it used misleading marketing tactics and charged hidden fees. The market wasn't deterred-shares were up 22% as of Wednesday's market close. MoneyLion was embroiled in a CFPB suit in 2022, in which it was accused of overcharging consumers. Shares were up 18.5% at the close Wednesday.
Buy now, pay later lenders Affirm and Sezzle also saw big gains. BNPL companies have been top of mind for the CFPB-the watchdog in May issued an interpretive rule categorizing them as credit card providers, and Affirm in July submitted a letter opposing the rule.
Sezzle was up 18% and Affirm was up 9.6% as of Wednesday's market close.
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(END) Dow Jones Newswires
November 06, 2024 16:36 ET (21:36 GMT)
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