Two Fintech Stocks Set to Outperform Upstart: SoFi and Remitly

Two fintech stocks with more promising futures than Upstart Holdings are SoFi Technologies and Remitly Global. SoFi has made a sharp recovery and is generating positive earnings, with a total customer base of 11.75 million and total revenue growth of 44% to $855 million last quarter. Remitly Global is a remittance services provider with a market cap of $3.3 billion, which has fallen due to immigration changes and stablecoin concerns, but may only be temporary headwinds. Both stocks have more room to expand and should be worth more than Upstart in five years.

Two fintech stocks, SoFi Technologies (NASDAQ: SOFI) and Remitly Global (NASDAQ: RELY), are showing significant promise and are expected to outperform Upstart Holdings (NASDAQ: UPST) in the coming years. Both companies have demonstrated robust growth and profitability, making them attractive investment opportunities for investors seeking exposure to the fintech sector.

SoFi Technologies

SoFi Technologies, an online bank, has made a sharp recovery and is now generating positive earnings. The company's total customer base reached 11.75 million last quarter, growing at a 51% compound annual rate since 2021. This growth led to total revenue of $855 million, an increase of 44% compared to the previous quarter. SoFi's goal is to become a one-stop mobile app for personal finance needs, and it is now separating itself from the competition. With a market cap of $25 billion, the stock may seem expensive with a price-to-earnings ratio (P/E) of 46. However, the company's large scale and efficient operations suggest that this P/E will decrease as it continues to grow [1].

Remitly Global

Remitly Global, a remittance services provider, has a market cap of $3.3 billion. Despite a recent fall in stock price due to immigration changes and stablecoin concerns, these issues are likely to be temporary. Revenue grew 34% year over year last quarter to $334 million, with net income of $11 million. Strong unit economics and minimal fixed costs mean that Remitly can generate high profit margins, giving it plenty of room to grow earnings in the years to come. With a revenue base of $1.356 billion that is growing rapidly, Remitly has the potential to have a market cap much larger than Upstart if it can continue to gain market share in remittances [1].

Conclusion

Both SoFi Technologies and Remitly Global have shown strong growth and profitability, positioning them for significant future success. While Upstart Holdings continues to struggle with profitability and market disruption, these two fintech stocks are poised to outperform it in the coming years. Investors should consider adding these stocks to their portfolios for long-term growth opportunities.

References

[1] https://finance.yahoo.com/news/prediction-2-stocks-worth-more-083900133.html