Shares of Dave Inc plunged 6.8% to $378.88 on Wednesday, marking the steepest single-session drop in a bruising week that has now erased roughly $45 per share from recent highs, as investors rushed to lock in gains from one of 2026's most extraordinary stock runs. Dave Inc Drops 6.8% as Investors Cash In on a 91% Rally — But With Earnings Due Next Week, Is the Selloff Premature or Overdue?
Shares of Dave Inc slid 6.8% to $378.88 on Wednesday, extending a week-long retreat from the neobank's July highs as profit-taking collided with a nervous broader market awaiting the Federal Reserve's interest-rate decision this afternoon.
A Jaw-Dropping Rally Invites Skeptics to the Table. Dave shares are up roughly 91% year-to-date , dwarfing fintech peers: over six months, SoFi and Robinhood have fallen 35.5% and 20%, respectively . That kind of outperformance eventually attracts sellers. Buckley Capital Advisors disclosed in its Q2 letter that it exited its Dave position after a 100%+ gain, noting "the stock has become very expensive."
A Seeking Alpha analyst echoed the concern, downgrading the stock because "valuation now outpaces fundamentals." At $378.88, the stock trades well above even the most bullish Wall Street targets from just months ago.
The Numbers Are Real — But Priced In. Q1 2026 revenue surged 47% year-over-year to $158.4 million, while adjusted EBITDA (a measure of operating profit before non-cash charges) jumped 57% to $69.3 million . The company deployed $194.9 million in share buybacks in Q1 alone, retiring 7% of outstanding stock . Management raised full-year revenue guidance to $710–$720 million and adjusted earnings per share to $16.25–$16.75 . These are strong figures, but at today's price the stock trades at roughly 23 times forward earnings — a steep ask for a consumer lender focused on non-prime borrowers.
The Fed and Oil Add Pressure at the Wrong Moment. The FOMC wraps its two-day meeting today, with the policy statement due at 2:00 p.m. Eastern . Some committee members are warming to a rate hike, and the statement may introduce a tightening bias . Higher rates raise borrowing costs for Dave's cash-advance customers and compress valuations for growth stocks across the board — a double threat. Geopolitical tensions tied to the Middle East conflict and volatile oil prices are further dampening risk appetite.
Q2 Earnings Next Week Become the Verdict. Dave reports second-quarter results on August 5, with analysts expecting $3.42 EPS on $170.9 million in revenue . The consensus view is that Dave's rally is backed by legitimate earnings power, but fresh buying is now "a more selective call." If Q2 misses or guidance stalls, today's pullback could deepen. If it beats again, the stock may quickly reclaim its highs — but the margin for error has never been thinner.