** Shares of digital bank LendingClub LC.N fall 23.4% to $12.90 premarket
** LC late Tuesday forecast Q1 loan originations between $1.8 bln to $1.9 bln and pre-provision net revenue of $60 mln to $70 mln
** JPM says Q1 forecast was a touch lighter than expected hurt by normal seasonal softness and increased marketing spend, which appears to have spooked traders
** KBW says investors were clearly holding expectations for a much stronger outlook, but believes the reaction to be overblown as LC has historically been extremely conservative with its forecast
** Brokerage believes there could be material upside to LC's forecast if the Fed were to cut more aggressively given the firm's current outlook assumes only a single 25 basis points rate cut in the back half of 2025
** LC stock soared 85.2% in 2024
(Reporting by Arasu Kannagi Basil in Bengaluru)
((ArasuKannagi.Basil@thomsonreuters.com;))
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