Pagaya's AI-Powered Ascent: A Fintech Force To Watch
Summary
- Pagaya Technologies Ltd. is a fintech company leveraging AI to enhance financial services, showing impressive revenue growth and profitability but facing funding cost unpredictability and competitive pressures.
- The company’s profitability has surged, with adjusted EBITDA up 88% YoY in Q4 and 156% for the year, indicating efficient scaling.
- Institutional funding and strategic partnerships are key to Pagaya’s expansion, though reliance on institutional capital poses liquidity risks in volatile credit markets.
- Despite macroeconomic challenges and high leverage, Pagaya's projected EPS jump of 132.84% in 2025 suggests potential upside, making it a promising but moderately risky investment.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PGY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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