Fintech was down big today despite many of these names already being down 60-70% from their highs.
I was looking at $UPST earlier and if you take the run rate of their Q4 earnings they have a PE of around 35 which seems very reasonable for a profitable company projecting strong growth in 2022. I know they have several risks and with recession concerns looming it's understandable why people are nervous.
That said, the selling was indiscriminate in this sector today and while I haven't researched all of the names in depth, these kinds of moves can sometimes present opportunities.
Are you buying any of these, and if so what is your bull thesis?
As I mentioned, $UPST seems to be approaching a level where it should see some valuation support here. $HOOD and $AFRM look like they might be decent acquisition plays. $SQ still seems a bit expensive, but has a good track record of innovation and has a experienced CEO at the helm. Not looked into $COIN or $SOFI much but $COIN seems likely to be a long-term winner and seems to be fairly reasonably valued if you believe it will continue to grow.
Today's moves:
- $SQ: -6.37%
- $SOFI: -9.14%
- $UPST: -11.20%
- $AFRM: -15.57%
- $COIN: -7.46%
- $HOOD: -8.55%
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