After Marathon Partners, which holds a 1.7% stake in OnDeck, slammed them for “a very risky strategy that has created a mindset of growth above all else,” OnDeck put on the brakes. Investors now seem shocked at the scope of the planned slowdown. The stock is currently down 79% from their IPO price in December 2014.
Investors now seem shocked at the scope of the planned slowdown. On Deck, which makes high-interest loans to small businesses, said it has begun raising credit standards while making smaller loans at shorter duration. Loan originations may decline by a fifth next quarter, and total originations will be lower this year than last.