NU - Forget Upstart These Unstoppable Stocks Are Better Buys
2024-04-24 06:15:00 ET
Investors went wild over Upstart Holdings (NASDAQ: UPST) stock when it first went public in late 2020, only for the shares of the artificial intelligence (AI) credit scoring company to crumble in 2022 as lending slowed. Things looked like they were set for a rebound this year, but that hasn't happened yet, and management isn't sounding very optimistic now. Although it forecast a sales increase in the 2024 first quarter, management does not expect a return to profitability.
At the current price, Upstart stock isn't even a bargain, trading at 3.6 times trailing 12-month sales. Upstart could still recover and go on to become an incredible stock, but right now there are other fintech stocks that look like better buys. SoFi Technologies (NASDAQ: SOFI) , Nu Holdings (NYSE: NU) , and Pagaya Technologies (NASDAQ: PGY) are three growth stocks that are performing well under pressure and have lots of potential.
SoFi is an all-digital bank geared toward millennials and young professionals. It began as a student loan cooperative, but it has expanded to offer a full suite of online financial services. Its lower fees, high rates, and easy-to-use interface are attracting millions of new customers, and as new customers sign up for accounts, management is focused on cross-selling new products.
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Forget Upstart, These Unstoppable Stocks Are Better Buys