Bleecker Street short Dave, says 100% downside possible

In a recently published report, Bleecker Street Research said it is short Dave and that 100% downside possible as the “regulatory heat turns up the heat” on the lender. “Dave is a predatory payday lender masquerading as a consumer-friendly fintech that protects its users from excessive overdraft charges. However, the company faces several critical threats to its model… Dave is in the hot seat after the CFPB released trial rules interpretations against earned wage access providers, specifically calling out tips. While Dave argued it was outside the scope of this regulation, if it looks like a duck, and quacks like a duck…. We believe DAVE is worth $0 to $10/ share, implying 70% to 100% downside.”