- Shift4 Payments reports better-than-expected first-quarter results, raising full-year guidance.
- Upstart Holdings rallies after Bank of America upgrades the stock, citing improved business fundamentals.
What happened: Fintech sector sees positive movement
Fintech stocks were in focus on Tuesday as several companies reported earnings and received analyst upgrades. Shift4 Payments saw its shares rise more than 10% after reporting first-quarter results that exceeded expectations and raising its full-year guidance. The company reported adjusted earnings of $1.07 per share, above the LSEG expectation of 71 cents per share. Sales for the quarter were $848 million, slightly below the consensus estimate of $868 million. Shift4 projected adjusted EBITDA of $853 million for 2025, up from $843 million. The company’s end-to-end payment volume reached $45 billion for the quarter, topping StreetAccount’s consensus estimate of $43 billion.
Upstart Holdings also saw its shares rally after Bank of America upgraded the stock to neutral from underperform, setting a $53 price target. The firm cited a more balanced risk-reward outlook, supported by improving business fundamentals and a more reasonable valuation. Upstart has been diversifying its loan portfolio, adding prime loans, HELOCs, and small-dollar loans, which are expected to provide more stable volumes. PayPal reported mixed results, with shares rising 1.5% after an earnings beat and revenue that slightly missed estimates. Venmo, a subsidiary of PayPal, reported a 20% year-over-year increase in revenue, reflecting early progress in monetizing the platform.
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Why it is important
The positive movement in fintech stocks, driven by strong earnings and analyst upgrades, highlights the sector’s resilience and potential for growth. Shift4 Payments’ better-than-expected results and raised guidance indicate a strong performance and confidence in future prospects. Upstart Holdings’ stock upgrade reflects improving business fundamentals and a more balanced risk-reward profile. These developments are crucial for investors looking to gauge the health and future trajectory of the fintech sector. The ability of companies like Shift4 and Upstart to deliver strong results amid economic uncertainty underscores their strategic positioning and operational efficiency.
