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Core Viewpoint - Upstart Holdings (UPST) and SoFi Technologies (SOFI) represent two distinct business models within the fintech industry, with UPST focusing on AI-driven credit assessment and automation, while SOFI offers a diversified digital financial platform. The analysis suggests that UPST may present a smarter investment opportunity compared to SOFI due to its higher growth potential and favorable valuation metrics. Upstart Holdings - Upstart Holdings utilizes artificial intelligence and machine learning to evaluate creditworthiness, moving beyond traditional FICO scores to include various factors such as education and employment history [1] - In Q4 2024, 91% of Upstart's loans were fully automated, leading to reduced costs and faster approvals, enhancing its competitive edge in personal lending [2] - The company is expanding into auto lending, home equity lines of credit (HELOC), and small-dollar loans, with auto originations and HELOCs both increasing by 60%, and small-dollar loans surging by 115% quarter over quarter [3] - For Q4 2024, Upstart reported a 56% year-over-year revenue increase and achieved a non-GAAP profit of $0.29 per share, a turnaround from a loss of $0.11 in the previous year [4] - Upstart's revenue growth guidance indicates a 57% increase for Q1 and 59% for the full year of 2025, suggesting continued momentum [4] SoFi Technologies - SoFi Technologies operates as a comprehensive digital financial platform, offering banking, investing, lending, and personal finance tools, supported by a national bank charter for low-cost loan funding [5] - In Q4 2024, SoFi added 785,000 new members, the highest in its history, and improved product-per-user metrics through effective cross-selling strategies [6] - The company is exploring enhancements in cryptocurrency services, which aligns with current regulatory trends and ambitions to position the U.S. as a leader in the crypto space [7] - SoFi's Q4 2024 revenue and non-GAAP EPS grew by 19% and 150% year-over-year, respectively, but its growth rates lag behind those of Upstart [8] - For the full year of 2025, SoFi expects a revenue growth of only 24%, significantly lower than Upstart's forecast [8] Stock Performance and Valuation - Over the past 12 months, Upstart Holdings shares have returned 46.9%, outperforming SoFi Technologies' 25.7% gain [9] - Both companies have similar forward 12-month price-to-sales (P/S) multiples around 3X, but Upstart's P/S ratio of 3.08 is below its one-year median of 5.26, indicating potential for upside [10] - SoFi's P/S multiple of 3.03 is in line with its historical average, suggesting that much of its expected growth is already reflected in its stock price [10] Earnings Estimates - The Zacks Consensus Estimate for Upstart Holdings indicates a 59.3% year-over-year increase in sales and a staggering 785% increase in EPS for 2025, with positive trends in EPS estimates over the past 60 days [12] - In contrast, SoFi Technologies' 2025 sales and EPS are expected to grow by 23.9% and 66.7%, respectively, with recent downward trends in EPS estimates [15] Conclusion - Upstart Holdings is positioned for higher growth due to its innovative AI-driven models and favorable valuation metrics, while SoFi Technologies, despite its strengths, shows slower growth potential [16][17]

Company: Upstart Holdings, Inc. (UPST) - UPST shares increased by 8.6% to close at $37.78, following a significant sell-off in the previous week, attributed to a recovery in the broader stock market [1] - The stock experienced a 35.2% loss over the past four weeks, indicating volatility [1] - The upcoming quarterly earnings are expected to be $0.19 per share, reflecting a year-over-year increase of 161.3%, with revenues projected at $200.74 million, up 57.1% from the previous year [2] - The consensus EPS estimate for UPST has remained unchanged over the last 30 days, suggesting that the stock's price movement may not sustain without earnings estimate revisions [3] - UPST currently holds a Zacks Rank of 2 (Buy), indicating positive market sentiment [3] Company: NerdWallet, Inc. (NRDS) - NRDS shares closed 3.1% lower at $8.01, with a return of -12% over the past month [3] - The consensus EPS estimate for NRDS is -$0.10, representing a drastic change of -1100% from the previous year [4] - NRDS currently has a Zacks Rank of 3 (Hold), indicating a neutral outlook [4] Industry: Financial - Miscellaneous Services - Both Upstart and NerdWallet belong to the Zacks Financial - Miscellaneous Services industry, highlighting the competitive landscape within this sector [3]

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Tech stocks have been hit hard in recent weeks amidst tariff and recession fears. I had previously viewed Upstart ( UPST ) as simply benefitting another meme rally, but the company’s strong execution (and secondarily the stock’s pullback) have ledJulian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurd ...

Upstart Holdings, Inc. (UPST) has been on a rollercoaster ride so far in 2025. Despite delivering back-to-back quarters of strong financial performance, the stock has fallen 10.4% year to date. Also, UPST has plunged nearly 43% from its 52-week high, reached on Feb. 13, following overwhelming fourth-quarter 2024 results reported on Feb. 11.UPST YTD Price Return PerformanceImage Source: Zacks Investment ResearchThe sharp sell-off stems from broader market volatility, driven by trade tensions and slowing econ ...

Company Overview - Upstart Holdings, Inc. is a pioneer in digital lending, applying machine learning models to various aspects of the lending industry since 2014, well before the term AI became popular [3]. Business Model - The company utilizes machine learning for credit underwriting, fraud verification, servicing, and borrower acquisition, resulting in lower APRs for borrowers due to reduced default risk and increased automation, which minimizes process friction [3]. - Upstart operates on a relatively low capital intensity business model, charging fees to lenders and institutional investors who provide funds on the platform [3].

Group 1 - Upstart Holdings went public through an IPO on December 18, 2020, and gained significant speculative interest due to its use of artificial intelligence to assess credit risk [1] - The innovative approach of using AI in credit risk evaluation attracted individual investors, highlighting a growing trend in the financial technology sector [1] Group 2 - The article does not provide any additional relevant information regarding the company or industry [2]

Group 1 - Upstart Holdings, Inc. (UPST) is a notable stock within the Finance sector, which includes 870 companies and ranks 1 in the Zacks Sector Rank [2] - The Zacks Rank system focuses on earnings estimates and revisions, with UPST currently holding a Zacks Rank of 2 (Buy) [3] - UPST's full-year earnings consensus estimate has increased by 96.8% in the past quarter, indicating improved analyst sentiment and a positive earnings outlook [4] Group 2 - Year-to-date, UPST has returned 8.7%, outperforming the average Finance sector return of 4.4% [4] - UPST belongs to the Financial - Miscellaneous Services industry, which has 87 stocks and currently ranks 39 in the Zacks Industry Rank; this industry has an average loss of 1.9% year-to-date [6] - Enact Holdings, Inc. (ACT) is another Finance stock that has performed well, returning 4.5% year-to-date, and also holds a Zacks Rank of 2 (Buy) [5][7]

Group 1 - Upstart Holdings, Inc. (NASDAQ: UPST) has reported strong lending operations, surprising investors with an unexpected profit for the last quarter, which led to a significant stock breakout [1] - The company's performance indicates a positive trend in the fintech sector, highlighting its innovative approach and potential for growth [1] Group 2 - The article emphasizes the importance of keeping an eye on high-tech and early growth companies, suggesting that there are ample research and investment opportunities in this space [2] - The focus on innovation and disruption within the industry is crucial for identifying potential growth buyouts and value stocks [2]