For those who are following fintech stocks, I know it’s been a tough year. Upstart ($UPST), the darling of fintech on Wall Street, is down 92% from the 52-week high and many other stocks like Block (previously known as Square $SQ) is down so much that it’s hard to not look at them . And here is a list.
- Upstart ($UPST): down 92%
- Block ($SQ): down 75%
- PayPal ($PYPL): down 65%
- Toast ($TOST): down 70% (they are jackasses so I am okay with their stock being down and I hope it rots down to $1)
- Repay ($RPAY): down 62%
- Sea ($SE): down 82%
- Nuvei ($NVEI): down 75%
- SoFi ($SOFI): down 61%
- Affirm ($AFRM): down 79%
- Pagaya ($PGY): down 76%
Of these, I want to bring your attention to Pagaya ($PGY) as I think they have the most upside at the moment and here are my reasons why.
- Use of AI (artificial intelligence) to perform credit scoring with a minimal risk to lenders.
- Unlike Upstart. Pagaya has a diverse portfolio of services: credit card partnership with Visa, personal loan, auto loans, credit cards and real estate.
- Streamline process by raising funds before an approval (something Upstart doesn’t do).
- MoffettNathanson analyst Eugene Simuni thinks Pagaya is a long-term winner in the smart lending space.
So my take, by stocks or call options as we expect this to head back to $5.35, $6.08 and $9.67 in the near-term but before you make any investment decisions, please do your own DD. And if this isn’t your cup of tea, take a look at $SOFI.
Happy Trading!