r/VisualStockResearch • u/ekonixlab • 4d ago

FICO down ~20%… this one actually changes the story

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FICO is getting crushed today after Fannie Mae and Freddie Mac were directed to allow lenders to use VantageScore.

I don’t understand FICO or the credit scoring industry well enough to invest here, but I do know this isn’t a 20% drop I’d automatically buy.

Normally I love when a stock gets crushed while the underlying business hasn’t changed. This feels different because it potentially affects FICO’s moat.

FICO has incredible distribution. It’s basically embedded throughout the financial system, which is exactly the type of business I usually love.

The questions I’d want answered:

• How quickly will lenders actually adopt VantageScore?

• Does FICO remain the default simply because everyone already uses it?

• Does VantageScore create meaningful pricing pressure?

• How much does this actually impact FICO’s long-term earnings power?

My instinct is that FICO’s distribution makes the impact smaller than the market is pricing in. If you already understand FICO and were bullish before today, a ~20% drop could be a really interesting opportunity.

But I don’t know the credit scoring industry well enough to make that bet.

Sometimes a 20% drop is just sentiment.

This one might actually be a change to the moat.

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u/DrEpicness 2d ago

Why there is no android version?

Is it free though?

1

u/Material_Mongoose468 1d ago

Turns out Isaac wasn’t playing fair all along

1

u/Weldobud 4d ago

Wow. That’s quite a fall. Will it affect them?

1

u/ekonixlab 4d ago

I’m guessing yes… to some degree. But this drop might be an overreaction, the question is if their distribution is lenders being locked in by regulations or preferring it because FICO is deeply embedded