Latest news with #Upstart
Yahoo
2 days ago
- Business
- Yahoo
Upstart (UPST) Rallies 10.64% on Steady Fed Rates
We recently published a list of These 10 Stocks Boast Double-Digit Gains Amid Boring Market. Upstart Holdings Inc. (NASDAQ:UPST) is one of the best-performing stocks on Thursday. Upstart Holdings grew its share prices by 10.64 percent on Wednesday to close at $59.08 apiece following the Federal Reserve's decision to keep interest rates steady, while keeping its forecast of two cuts for the year. The announcement bolstered investor sentiment among financial and lending companies, including Upstart Holdings Inc. (NASDAQ:UPST), on optimism over a strong demand from more expected rate cuts. Upstart Holdings, Inc. (NASDAQ:UPST) is an Artificial Intelligence-powered lending marketplace which offers services such as personal loans, automotive retail and refinance loans, home equity lines of credit, and small dollar 'relief' loans. It connects millions of consumers to more than 100 banks and credit unions that leverage its AI models and cloud applications. A close-up of a businesswoman using a laptop, being illuminated by the AI-enabled cloud interface sponsored by the company. Upstart Holdings, Inc. (NASDAQ:UPST) currently holds a 'hold' recommendation from Zacks Research amid clear operating leverage and its aggressive expansion into new credit categories with improving AI and funding structures. While we acknowledge the potential of UPST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
PGY Shares Soar 100.9% YTD: Time to Buy More or Lock in Profits?
Pagaya Technologies Ltd. PGY is one of the most compelling fintech companies in today's market. The company leverages cutting-edge artificial intelligence (AI) and machine learning to enhance credit decision-making and underwriting across consumer lending platforms. Its proprietary AI-driven models enable financial institutions to broaden access to credit while maintaining strong risk management and operational investors are bullish on PGY stock, which has surged 100.9% this year. The company has fared better than its close competitors, LendingTree TREE and Upstart Holdings UPST. So far this year, shares of LendingTree have declined 8.8%, while Upstart has lost 10.6%. YTD Price Performance Image Source: Zacks Investment Research Let's find out what's driving PGY stock and whether you can still add it to your portfolio or not. Diversified and Resilient Business Model: Pagaya's core strength lies in its resilient and adaptable business model. The company is actively expanding beyond its original focus on personal loans, moving into auto lending and point-of-sale (POS) financing. This diversification reduces exposure to cyclical risk in any single loan category, making the business more stable across economic Pagaya is diversifying its funding sources. It has built a robust network of more than 135 institutional funding partners to support the sale of its asset-backed securities (ABS). Also, the company leverages forward flow agreements—structured financing arrangements in which institutional investors commit to purchasing future loan originations from Pagaya's banking partners. These agreements offer a critical alternative funding source if ABS markets face disruptions during periods of market has a competitive edge in its proprietary data and product suite. One standout offering is its Pre-screen solution, which enables banks and lenders to present pre-approved loan offers to existing customers without the need for a formal application. By analyzing the lender's customer base and identifying qualified borrowers proactively, the company helps financial institutions deepen customer relationships and expand credit access with minimal incremental marketing spend. This marks an evolution in its value proposition—from driving market share gains for partners to now enhancing their share of wallet with existing Balance Sheet: Pagaya operates a capital-efficient model that largely avoids holding loans on its balance sheet, significantly reducing its exposure to credit risk and market volatility. This is made possible through a robust network of institutional funding partners and a strategic focus on issuing ABS. The capital raised in advance is held in trust and deployed only when a lending partner originates a loan through Pagaya's AI-driven network. At that point, the loan is immediately acquired by a pre-committed funding source, either through an ABS vehicle or a forward flow agreement. As a result, most loans never reside on Pagaya's balance sheet or only do so briefly before being off-balance-sheet model has proven particularly effective during periods of elevated interest rates and market stress, such as from 2021 through 2023. By minimizing credit exposure and avoiding significant loan write-downs, Pagaya has managed to preserve its financial flexibility in turbulent appears to rely heavily on forward flow agreements. These contracts provide a reliable and predictable source of capital, helping the company maintain liquidity even amid tightening credit markets and rising inflation. The company's funding strategy is highly capital-efficient. It enables it to scale while minimizing equity dilution and limiting balance sheet risk. As of March 31, 2025, Pagaya reported $206.5 million in cash and short-term investments, alongside $507.8 million in debt, positioning it well for continued growth. Over the past two months, the Zacks Consensus Estimate for earnings for 2025 and 2026 has moved higher to $2.45 and $3.13, respectively. The consensus estimate for earnings indicates 195.2% and 28% growth for 2025 and 2026, respectively. PGY Earnings Estimates Image Source: Zacks Investment Research Management projects net income (GAAP) to be in the range of $10-$45 million for Zacks Consensus Estimate for 2025 and 2026 sales implies year-over-year growth of 19.9% and 15.7%, respectively. The company expects total revenues and other income to be between $1.175 billion and $1.3 billion. Last year, the metric was $1.032 billion. PGY Sales Estimates Image Source: Zacks Investment Research Pagaya stock is currently trading at a 12-month trailing price-to-book (P/B) of 3.20X, which is below the industry's 3.37X. This shows the stock is trading at a discount. Price-to-Book Image Source: Zacks Investment Research PGY stock is inexpensive compared with Upstart, which has a P/B of 7.74X. Similarly, it is trading at a discount compared with LendingTree's P/B of 4.61X. Given its strong year-to-date performance, resilient business model and capital-efficient funding strategy, Pagaya stands out in the fintech space. Its AI-driven platform, diversified revenue streams and reliance on forward flow agreements shield it from market volatility and credit risk. With accelerating earnings and revenue estimates, along with bullish analyst sentiment, PGY is well-positioned for continued growth. Moreover, the stock trades at a discount relative to peers like Upstart and LendingTree, making its valuation attractive. For investors seeking exposure to a high-growth, tech-enabled lender with solid fundamentals, PGY stock remains a compelling present, PGY sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LendingTree, Inc. (TREE) : Free Stock Analysis Report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report Pagaya Technologies Ltd. (PGY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Dave & Buster's, Super Micro, Upstart, Texas Roadhouse, and Figs Stocks Trade Up, What You Need To Know
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes. This development triggered a significant decline in oil prices, easing inflation concerns. Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Leisure Facilities company Dave & Buster's (NASDAQ:PLAY) jumped 6.7%. Is now the time to buy Dave & Buster's? Access our full analysis report here, it's free. Hardware & Infrastructure company Super Micro (NASDAQ:SMCI) jumped 5.1%. Is now the time to buy Super Micro? Access our full analysis report here, it's free. Lending Software company Upstart (NASDAQ:UPST) jumped 5.1%. Is now the time to buy Upstart? Access our full analysis report here, it's free. Sit-Down Dining company Texas Roadhouse (NASDAQ:TXRH) jumped 5.3%. Is now the time to buy Texas Roadhouse? Access our full analysis report here, it's free. Apparel and Accessories company Figs (NYSE:FIGS) jumped 5.1%. Is now the time to buy Figs? Access our full analysis report here, it's free. Dave & Buster's shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 5 days ago when the stock gained 14.8% on the news that the company reported first-quarter 2025 results and provided encouraging updates on sales trends, as revenue came in line with expectations. The company noted improved momentum following the reintroduction of the Eat & Play combo, adjustments to menu pricing, and changes to the incentive structure for store managers. Additionally, free cash flow turned positive, which is a significant boost as management attempts to turn around the business. Given that markets are forward-looking, the stock's reaction suggests investors were able to look past the bottom line weakness during the quarter as operating profits and earnings fell short of Wall Street's estimates. Dave & Buster's is up 7% since the beginning of the year, but at $32.42 per share, it is still trading 27.1% below its 52-week high of $44.47 from June 2024. Investors who bought $1,000 worth of Dave & Buster's shares 5 years ago would now be looking at an investment worth $1,937. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-06-2025
- Business
- Yahoo
Block vs. Upstart: Which Fintech Stock Has More Upside in 2025?
The fintech sector is evolving fast, driven by innovation in digital payments, credit underwriting, and user experience. Two major players — Block, Inc. XYZ and Upstart Holdings UPST — stand out for their disruptive business models and strategic growth initiatives. Block leans into a multi-vertical payments ecosystem through Square and Cash App, while Upstart is reinventing consumer lending using artificial intelligence. As both companies tackle economic headwinds and rising competition, investors are wondering which stock is better positioned for 2025. Below, we explore the merits and limitations of each to help identify the stronger long-term XYZ or UPST, which of these Fintech stocks has the greater upside potential? Let's explore. Block continues to grow its comprehensive fintech platform, with its Square and Cash App ecosystems offering end-to-end solutions across payments, commerce, and banking. The latest innovations like the Square Point of Sale app and the rollout of 'Cash App Afterpay' showcase its commitment to user-centric design and revenue diversification. Block's omnichannel seller tools are helping businesses streamline operations, and its FDIC-approved lending capabilities add depth to its offerings. Cash App is also targeting younger users and families, while the Proto division is eyeing new frontiers in Bitcoin mining hardware, potentially unlocking future growth these innovations, Block faces several headwinds. Macroeconomic uncertainty, including tariffs and weaker discretionary spending in categories like travel and media, is limiting Cash App Card activity. Its gross profit is forecasted to improve later in the year, but the near-term softness is noticeable. Additionally, the company is battling intense competition from PayPal, Shopify, and newer fintech upstarts. While Block has solid momentum and diversified revenue streams, its performance remains sensitive to shifts in consumer behavior and macro conditions, making 2025 a year that could be shaped more by external variables than internal progress. Upstart is gaining traction as a differentiated player in lending by replacing FICO scores with AI-driven credit modeling. Its underwriting engine, which automates 92% of loans, provides not only efficiency but also a better borrower experience. The company's strength lies in its expanding loan portfolio, which now includes auto loans, HELOCs, and small-dollar loans. These categories posted double-digit sequential growth in the first quarter of 2025, reinforcing the company's operational execution and technological AI engine is also evolving. Model 19 introduces payment transition modeling, enhancing its ability to predict borrower behavior. These model upgrades are driving stronger conversion rates, which have risen from 14% to 19% in just a year. Financially, Upstart reported a 67% revenue increase year over year and flipped to profitability with a 30-cent non-GAAP EPS in Q1 2025. Even more impressive is its growing reliance on super-prime borrowers, which reduces risk and improves funding consistency. However, challenges remain — elevated interest rates and a dip in contribution margins are notable — but Upstart's rapid vertical expansion, smarter underwriting, and visible operating leverage suggest a fintech stock on the cusp of durable scale. The Zacks Consensus Estimate for Block's 2025 sales and EPS implies year-over-year growth of 3.55% and a decline of 25.22%, respectively. EPS estimates for 2025 and 2026 have been southbound over the past 30 days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)For Block: Image Source: Zacks Investment Research The Zacks Consensus Estimate for Upstart's 2025 sales implies year-over-year growth of 58.8%. What is also encouraging is that EPS estimates for 2025 have been trending northward over the past 60 Upstart: Image Source: Zacks Investment Research Year to date, Upstart shares have dropped 11.4%, which is less than the 24.9% decline in the shares of Block. XYZ and UPST Stock's Performance Image Source: Zacks Investment Research Despite the price plunge, XYZ is trading at a forward 12-month Price/Sales of 1.51X, ahead of its one-year median of 1.54X. Meanwhile, UPST is presently trading at a forward 12-month Price/Sales of 4.56X, at a premium to XYZ, but below its one-year median of 5.25X. XYZ and UPST Valuation Image Source: Zacks Investment Research While Block has a proven ecosystem and deep roots in payments, its near-term trajectory is hindered by soft consumer demand and intense competition. Upstart, on the other hand, is showing clearer operating leverage and expanding intelligently into new credit categories with improving AI and funding structures. With strong revenue momentum and rising profitability, Upstart emerges as the fintech with greater upside potential in 2025 for long-term investors seeking innovation-led Upstart has a Zacks Rank #3 (Hold), making the stock a stronger pick compared with Block, which has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Forbes
13-06-2025
- Business
- Forbes
6 Best 6 AI Stocks To Buy Now For Future Returns
Nvidia was one of the first companies to monetize the AI revolution, but it will not be the last. As AI innovation reshapes business processes, there is ample room for AI software, service and hardware providers to generate meaningful value and wealth — for customers and investors. Identifying which stocks will rise to prominence is the AI investor's big challenge. Below are six strong contenders that are worth a deeper dive. Based on market opportunity, projected results and competitive positioning, one or more of these six AI stocks may be the future star of your growth portfolio: A review of each company follows. For more investing ideas, see best stocks for 2025. Upstart Holdings operates an AI-powered lending marketplace that overhauls the traditional credit-scoring model. The company's streamlined, all-digital loan applications identify more creditworthy borrowers, improves access to affordable debt and lowers costs for lenders. According to Upstart data, its technology approves 43% more applicants at 33% lower APRs. Upstart quantifies the global credit market at over $25 trillion, with $1 trillion available to origination and servicing platforms. Upstart generated 2024 revenue of $637 million and recorded a net loss of $137 million. In 2025, the company expects $1 billion in revenue and a net loss of $80 million. Per analysts expect the company to generate positive EPS of $1.49 in 2025, rising to over $4.50 by 2029. Upstart stock trades for about $57 per share and is up 138% over the past year. Snowflake operates a cloud-based data warehouse and a platform to access the data for AI and other applications, analytics and collaboration. A Contino review says Snowflake's platform "enables data storage, processing, and analytic solutions that are faster, easier to use, and far more flexible than traditional offerings." According to Snowflake's 2025 Investor Day presentation, the company expects its market opportunity to reach $355 billion by calendar year 2029. That's more than double the estimated market size of $170 billion in 2024. Snowflake serves a diverse customer group that includes meal kit company Hello Fresh, German automaker BMW Group and transportation services provider Penske. Customers use Snowflake to support a range of objectives, from cost efficiency to improved customer experiences. In fiscal 2025, Snowflake generated $3.4 billion in revenue and recorded a GAAP operating loss of $1.4 billion. The company expects first-quarter 2026 revenue growth of 21% to 22% with an operating margin of 5%. Analysts expect Snowflake to reach $10 billion in revenue and EPS over $4 in fiscal 2030, according to Snowflake stock trades for about $212 per share and is up 70% over the past year. CrowdStrike operates a cybersecurity solution called Falcon that uses AI to detect and block malware and other digital threats. The company recently announced the release of a new agentic AI with autonomous reasoning and investigative capabilities for faster threat mitigation. CrowdStrike serves more than 70% of Fortune 100 companies and 18 of the top 20 U.S. banks, according to a 2024 investor presentation. The company values the AI-native security platform market at $116 billion. In fiscal 2025, CrowdStrike produced revenue of $3.95 billion and a GAAP operating loss of $120 million. Analysts expect the company to eclipse $10 billion in revenue and $8 in EPS in fiscal 2030, according to CrowdStrike stock trades for about $486 per share and has gained 28% over the past year. The gain is despite a steep stock-price decline last summer, following a failed update that crashed more than 8.5 million systems. Ambarella designs and sells low-power vision processors for use in edge AI applications such as autonomous driving systems, drive recorders, vehicle safety features, surveillance systems and more. Edge AI applications process data locally, rather than sending data to the cloud for processing. As a result, they can produce faster responses with lower power consumption. Power efficiency is a focus for Ambarella—the company says its chips deliver the same or better results while being up to five times more efficient than competitor solutions. A research report from S&S Insider values the edge AI chips market at $21.4 billion in 2024 and projects a CAGR of 33.93% from 2025 to 2032. That translates to a 2032 edge AI chip market worth $221.5 billion. For fiscal 2025, Ambarella reported $284.9 million in revenue and a GAAP net loss of $117 million. Analysts expect the company's revenue to surpass $500 million and EPS to approach $1.50 in fiscal 2029, according to AMBA stock trades for about $54 and is down 2% over the last year. Arm Holdings designs high-performance, energy-efficient CPUs and GPUs, and then licenses the architecture. Licensees customize Arm designs to suit their applications. According to Arm, its technology is trusted and tested by more than 22 million software developers globally. Arm partners include Nvidia, Google, Microsoft, Meta, Mercedes-Benz and Fujitsu. Arm's foundational role in chipmaking expedites innovation and time-to-market while lowering hardware acquisition costs for data centers. Prior to its 2023 U.S. IPO, Arm estimated its total addressable market (TAM) was $202.5 billion. The company also projected that its TAM would grow to $246.6 billion by December 31, 2025. In fiscal 2025, Arm reported revenue of $4 billion and diluted EPS of $0.75. Analysts expect the company will produce revenue of $9.8 billion and EPS of $3.95 in fiscal 2030, per ARM stock trades for about $139 per share and is down 8.4% over the past year. The Trade Desk runs an ad-buying platform that offers highly targeted and global audiences across multiple digital channels, including smart TVs. The company uses AI to analyze millions of ad opportunities each second to identify the most valuable and cost-efficient placements. According to company data, the Trade Desk's AI can increase advertiser reach by three times and reduce cost-per-action by 34%. Current customers include McDonald's, Ikea, New York Post, Audi and Kellogg's. The total addressable global advertising market is nearing $1 trillion, according to The Trade Desk's first quarter 2025 investor presentation. In 2024, The Trade Desk delivered revenue of $2.4 billion and GAAP diluted EPS of $0.78. Analysts expect the company to double its revenue to $5.9 billion and more than quintuple its EPS to $4.42 in 2029, according to TTD stock trades for about $71 per share, after a 26% decline over the past year. Bottom Line The AI revolution is still in its infancy, which means disciplined investments today could pay off handsomely over the next three to five years. Opt for companies using their competitive advantages to establish leadership positions in big markets. From there, be patient, but also ready to adjust your portfolio as this industry evolves.
