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Envestnet shares nosedive before regaining some ground after Bill Crager lays out bold new 'post-COVID' vision and tosses one 'curveball'

The stock lost 20% of its value Friday (Feb. 26), after the Chicago outsourcer's CEO revealed plans to be a digital supermarket to financial supermarkets but at the expense of some 2021 earnings growth

Author Brooke Southall March 2, 2021 at 2:47 AM
1 Comment
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Bill Crager: I think we need to accelerate post-COVID the investment to get there faster.

Technology


Brian Murphy

Brian Murphy

March 2, 2021 — 6:08 AM
When Mr. Crager says "Envestnet is the company that is best positioned," - he's right...they're best positioned to fight the last war. The industry is morphing before our eyes and unfortunately Envestnet looks to be one of the last to notice. If he's going to spend $20MM on personnel, he'd be well advised to rethink where the industry is headed - how consumers will get their advice in 20 years and who's going to be providing it for them. It's not going to come from "the Costco of financial service providers". And that's distasteful medicine that needs to be swallowed.

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