In today's video, I look at fundamentals and valuation metrics for Upstart (UPST 3.90%) and StoneCo (STNE 3.34%). Below I share a few highlights from the video on why investors should add them to their watch lists.
Two reasons to add Upstart to your watch list
- Upstart is a growing online lending platform company that uses artificial intelligence to automate the lending process. It reported 121% year-over-year (YOY) revenue growth, and 71% of loans were fully automated and instantly approved for the first quarter of 2021.
- For the first quarter of 2021, 96% of Upstart's revenue came from fees it collected from banks or services; so even though it is a lending platform, it has no credit exposure, as stated in its most recent earnings presentation.
Two reasons to add StoneCo to your watch list
- StoneCo is a growing payment solutions company in Brazil. It provides solutions like point-of-sale systems, online payment solutions, finance management, e-commerce solutions, and much more. It reported 21% YOY revenue growth, and total payment volume grew 35% YOY for the first quarter of 2021.
- StoneCo has solid fundamentals for its trailing 12 months. It has positive earnings and substantially more cash and short-term investments than debt.
Click the video below for my full thoughts and analysis.
*Stock prices used were the mid-day prices of June 14, 2021. The video was published on June 14, 2021.
