Photography/Īfter looking at several high-profile fintech plays, let’s take a look at a more under-the-radar one. XTM (XTMIF)Ī green button on a keyboard has an arrow pointing upward with the word "Buy". Although it may be better to lock down a position on weakness, UPST is another possible long-term buy to consider among the fintech stocks. The company has already started to exceed expectations, another factor explaining UPST’s dramatic spike in price. Much like the situation with PGY, “less bad” economic conditions may be all that it takes to produce better-than-expected results. Even so, keep in mind that Upstart shares sank sharply when recession fears first emerged. Shares today trade for nearly 66 times earnings. Plenty may view this recent spike as a case of “too far, too fast,” as recession risks still loom. Not only that but following this big price run-up, UPST stock on the surface appears overvalued. Shares in this AI-powered lending platform operator have more than tripled in price since May. To say Upstart Holdings (NASDAQ: UPST) has been on a tear lately is an understatement. Hands at desk near laptop computer, with one hand holding a pile of hundred dollar bills. In turn, a path back to double-digit prices. All of this gives SoFi a strong pathway to profitability. More importantly, it’s not as if the resumption of student loan repayments will have just a one-and-done impact on SoFi’s growth.īesides possibly sparking a growth resurgence for SoFi’s student loan refinancing arm, the fintech company stands to benefit from cross-selling other financial services to those initially becoming SoFi members to use its legacy offering. Still, shares have held onto most of their recent gains. However, once the Supreme Court made its decision on the constitutionality of student loan forgiveness, the market sold the news with SOFI stock. During late May/early June, shares in this neobank took off like a rocket, as investors bought on the rumor of the “student loan saga” finally coming to an end. In recent months, I have been very bullish on SoFi Technologies (NASDAQ: SOFI). Stock charts are in the background of the image. Stocks to buy: smartphone with the words "buy" and "sell" displayed on the screen. Investors have started to catch onto the opportunity here with PGY, but if you’re investing in fintech stocks, there’s still time to lock down a small, speculative position. If Pagaya survives the current economic downturn, it may be well-positioned to keep growing during the recovery. economy, downside risk is likely already baked into the PGY stock price, following its sharp price decline. However, irrespective if there’s a “hard landing,” “soft landing,” or neither (no recession) for the U.S. Since last year, there have been big concerns that AI-based loan underwriting models will not hold up during a severe economic downturn. An early-stage company, Pagaya uses artificial intelligence (or AI) to assess loan risk. My main argument was that this fintech had tremendous upside potential if economic conditions normalize from here. Light bulb on tablet and Stock graph and business technology icon with abstract electronic circuit background.īack in June, I argued Pagaya Technologies (NASDAQ: PGY) was one of the best DeSPAC stocks out there.
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