Dave Plunges 21% as Credit Losses Top Forecasts After 50% Rally

U.S. stocks plunged on November 5, two days after the Democratic Party's landslide victory in the November 3 midterm elections secured control of Congress, with the Nasdaq composite falling about 5% and AI-related stocks like Nvidia dropping up to 10% on regulatory concerns. Fintech and financial services stocks were also hit hard, with Los Angeles-based small-loan provider Dave falling 21% during trading to a market value of $3.4 billion. The decline followed Dave's November 4 Q3 earnings report, which showed net income of $64 million but revealed credit losses exceeded expectations despite earlier repayment improvements. Dave's gross margin of 70% fell short of the 73% analysts expected, due to higher loan loss provisions and increased funding costs from switching partner banks. Other fintech firms including Figure, SoFi, and Affirm also dropped 8-11%, while Robinhood fell 12% amid declining crypto trading revenue.