Fintech stocks saw notable movement Tuesday as a wave of earnings releases and analyst commentary spurred investor reactions across the sector. Shares of Shift4 Payments and Upstart Holdings recorded significant gains, while PayPal posted a modest rise despite delivering a mixed quarterly update.
Shift4 shares jumped over 10% after posting stronger-than-expected first-quarter earnings and raising its full-year outlook. The company reported adjusted earnings of $1.07 per share, well above the 71 cents expected. Although revenue came in at $848 million, slightly below the consensus forecast of $868 million, investors focused on the positive guidance and strong performance in newer business verticals. Shift4, which has been expanding into sectors like stadiums, gaming, and travel, raised its 2025 adjusted EBITDA guidance to $853 million, up from $843 million. The company also reported $45 billion in end-to-end payment volume for the quarter, exceeding expectations.
Upstart Holdings also saw its shares surge after Bank of America upgraded the stock from underperform to neutral, setting a $53 price target. The firm highlighted a more balanced risk-reward profile following a steep 45% drop in the stock since mid-February. Analysts noted that Upstart’s efforts to diversify its loan offerings—including prime loans, HELOCs, and enhanced auto loan products—have reduced its reliance on subprime borrowers and strengthened its fundamentals. These changes are expected to stabilize loan volumes and improve investor sentiment. Despite a sharp rise in recent trading sessions after earnings announcements, nearly 28% of Upstart shares remain shorted. The company is set to report first-quarter earnings on May 6, followed by an AI-focused Investor Day on May 14.
PayPal shares edged up by about 1.5% after reporting a quarterly earnings beat, although revenue slightly missed expectations. One area of strength was Venmo, where revenue climbed 20% year over year, a sign that monetization efforts may be gaining traction. While Venmo’s total payment volume rose 10%, its revenue outpaced that growth, supported by products like Venmo debit cards, instant transfers, and Pay with Venmo at checkout—services that generate revenue unlike traditional peer-to-peer transfers. Analysts from Mizuho noted improved branded payment volume and maintained optimism despite some investor caution, particularly around PayPal’s decision to leave full-year earnings guidance unchanged despite a lower tax rate.
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