Tiger Global Management, the prominent New York-based hedge fund led by billionaire Chase Coleman, has significantly increased its stake in Wealthfront Corporation during the fourth quarter of 2025, according to the firm’s latest regulatory filing. The investment powerhouse purchased 15.16 million shares of Wealthfront, signaling strong confidence in the digital wealth management platform despite volatile market conditions. This strategic move comes as Tiger Global simultaneously trimmed positions in established technology giants including NVIDIA Corporation, Amazon.com, and Microsoft Corporation.
The hedge fund’s aggressive bet on Wealthfront underscores a broader shift toward high-growth fintech opportunities in the automated investment space. Tiger Global was already among Wealthfront’s largest pre-IPO shareholders, owning approximately 20% of the company following earlier funding rounds. The investment firm’s decision to load up on additional shares following the company’s public debut demonstrates continued conviction in the robo-advisor business model.
Wealthfront’s Rocky Start as a Public Company
Wealthfront Corporation completed its initial public offering on the Nasdaq Global Select Market in December 2025, pricing shares at $14 and raising approximately $486 million. The California-headquartered financial technology company achieved an initial valuation of around $2 billion. However, the stock performance since the IPO has been challenging, with shares currently trading at $8.90, representing a decline of 34.5% year-to-date.
The company specializes in automated digital wealth management and investment services, pioneering the robo-advisor model that leverages software to deliver algorithm-driven investment portfolios and financial planning tools. Additionally, Wealthfront offers cash management products tailored to tech-savvy investors seeking low-cost alternatives to traditional wealth management services. The platform currently manages $92.8 billion in total platform assets, according to company disclosures.
Mixed Financial Results Pressure Share Price
Wealthfront reported its first quarterly earnings as a public company on January 12, covering the third quarter of fiscal 2026 ended October 31, 2025. According to the company’s disclosures, WLTH delivered record quarterly revenue of $93.2 million, representing approximately 16% year-over-year growth. Net income increased modestly to $30.9 million, up roughly 3% compared to the prior year.
However, profitability metrics showed concerning trends that contributed to investor caution. The net income margin contracted to 33% from 37% a year earlier as higher expenses and operational investments weighed on bottom-line results. The company reported earnings per share of $0.21, compared with $0.22 in the same quarter a year earlier, falling short of growth expectations.
Meanwhile, the most significant weakness emerged in monthly net deposit activity. The metric reversed from $874 million of inflows a year earlier to a net outflow of $208 million for December 2025. This deterioration sparked a roughly 16.8% one-day drop in share price on January 13 as markets digested the disappointing news about customer deposit trends.
Institutional Support Provides Recent Momentum
Despite the challenging financial results, institutional interest from marquee investors such as Tiger Global Management has lent renewed support to the stock in recent trading sessions. The digital wealth management stock surged 9.3% on February 17 and 9% on February 18, according to market data. This uptick followed the disclosure of Tiger Global’s increased position in the company’s latest 13F filing.
In contrast to the weak net deposit figures, adjusted EBITDA grew 24% year-over-year to $43.8 million with an expanded adjusted EBITDA margin of 47%, up from 44% in the third quarter of 2025. This operational metric suggests underlying business efficiency improvements despite top-line headwinds. Nevertheless, WLTH currently trades at a premium of 3.85 times forward sales compared to the sector median of 2.90 times, indicating elevated valuation expectations.
Analyst Outlook on Digital Wealth Management Growth
Wall Street analysts maintain a generally positive outlook on Wealthfront Corporation despite near-term challenges. The stock has a consensus “Moderate Buy” rating, with three analysts advising a “Strong Buy,” two suggesting a “Moderate Buy,” and three maintaining a “Hold” rating. The average analyst price target of $16.17 indicates potential upside of 83%, while the Street-high target price of $20 suggests the stock could rally as much as 126.8%.
Keefe, Bruyette & Woods reiterated its “Outperform” rating and $16.50 price target on Wealthfront Corporation following the fiscal Q3 2026 results, despite trimming its fiscal 2027-2028 AEBITDA and EPS estimates by 2-3% due to softer-than-expected net deposits. However, KeyBanc Capital Markets maintained a more cautious “Sector Weight” rating with a $13 fair value following the company’s first quarterly report as a public company.
Analysts forecast a loss per share for the full year of fiscal 2026 of $0.41, representing a significant 100% decline year-over-year. However, earnings are expected to rebound in fiscal 2027 with projected EPS rising 212% to $0.46, suggesting improving fundamentals ahead as the company works through its current operational challenges and deposit headwinds.
