Fintechs Upstart and Toast soar on earnings
Wall Street applauded results from fintech companies Upstart and Toast.
Upstart, which uses artificial intelligence to inform online lending decisions, soared 46% on Friday, its best day in over three years. Toast, which sells payments technology to restaurants, jumped 14%, closing at its highest since 2021.
Both companies reported better-than-expected results, sparking the rallies.
Upstart's revenue jumped 20% in the third quarter to $162 million, easily beating analyst estimates. CEO David Girouard said on the company's earnings call that, "we're in growth mode."
Toast is still well off its pandemic highs of 2021, but the stock has now more than doubled this year. The company's adjusted earnings forecast of $90 million to $100 million for the current quarter sailed past estimates.
The two stocks were part of a huge rally on Wall Street this week that followed Donald Trump's election victory on Tuesday night. All three major indexes closed at records, with the tech-heavy Nasdaq finishing the week up 5.7%, its second-best week of the year.
Within fintech, companies tied to crypto were some of the top performers, after candidates funded by the crypto industry won races up and down the ballot.
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Do you have any thought on how might Upstart’s AI lending model impact the future of fintech in the lending space?
Will any defi platform look at similar solutions?