Figure Technology Solutions (FTS) shares have plunged 60% from their 52-week high, prompting Wall Street firm Bernstein to label the selloff an oversold buying opportunity. The blockchain-focused lending platform’s stock decline coincides with broader fintech sector volatility but diverges from analyst expectations.
The San Francisco-based company, which specializes in home equity loans and mortgage products using distributed ledger technology, reached a market capitalization of $3.2 billion in November 2023 before its precipitous drop. Sources familiar with institutional trading activity note that hedge funds have been rotating out of crypto-adjacent fintech stocks amid regulatory uncertainty.
‘This is a classic case of market overreaction to sector-wide headwinds,’ said a Bernstein analyst who requested anonymity due to firm policy. ‘Figure’s core lending business continues showing 30% YoY growth, and their blockchain infrastructure provides tangible cost savings.’
However, regulatory filings show FTS’s loan delinquency rate rose to 4.8% in Q4 2023, up from 3.2% the previous quarter. Analysts at Morgan Stanley have maintained an underweight rating, citing ‘disproportionate exposure to volatile crypto-asset collateral.’
The coming weeks may prove decisive as Figure prepares to report Q1 earnings on May 7. Market watchers will scrutinize whether Bernstein’s contrarian call identifies genuine value or underestimates structural risks in blockchain-based finance.