The news is not great.
Investors are looking for a low-cost, low-risk option to take on some of the challenges that Acorns faces.
But as Axios’ Peter Kafka notes, this has led to some questions.
Acorns is still in a “toxic bubble” and is facing a lot of challenges, including the inability to grow its revenue and growth in the marketplace.
The startup’s stock fell $2.57, or 8.3%, to $26.60 in after-hours trading on Wednesday, after the company reported earnings on Thursday.
The company had expected a quarterly loss.
The company has been plagued by regulatory concerns.
In March, a US federal judge ruled against Acorns, saying it was too risky to let the company operate, because it didn’t comply with the rules.
The decision was overturned by a US appeals court.
Acorns appealed, and a ruling is expected in the next few months.
Acorn shares are trading below their IPO price, as investors look for a safe bet.
Acorn CEO Steve Jurvetson said in a blog post on Tuesday that investors should look at Acorns as a long-term investment, noting that it has more than doubled in value in the last year.
“Acorns has proven itself to be a strong, highly successful, innovative and dynamic company,” Jurvettons post said.
In addition to the potential for trouble, Acorns may not be able to find a buyer.
Its stock was trading around $35 a share at the time of the news release.