Zoom's outcomes must improve dramatically to warrant that gain. Revenue rose only 3% to $4.5 billion in fiscal 2024, which ended Jan. 31. Zoom's net income surged more than sixfold to $637 million, although lower operational expenses and other income sources helped boost earnings, making it probable that its profit levels will plateau soon.
Zoom's stock price hasn't risen in recent months, and investors may view its 32 price-to-earnings ratio as costly given its profit projection. Zoom's stock could recover if its webinar sector and AI-enabled features boost ARPU significantly.
Upstart Upstart uses AI to revamp an industry. It uses AI to assess borrowers' creditworthiness to replace Fair Isaac Corporation's FICO® score. Internal study showed the model can approve 44% more loans without increasing bank failure risks. This development could be very beneficial to banks.
The stock briefly reached $400 during the 2021 bull market due to excitement over this technology. Due to rising interest rates, the stock lost 97% of its value once its rapid expansion stopped.
Revenue declined 38% to $514 million in 2023. That period saw losses rise from $109 million in 2022 to $240 million last year.
The company appears to be recovering. Revenue increased from $135 million to $147 million in Q4. In Q4, 89% of its loans were approved automatically, up from 82% a year earlier, demonstrating its better AI technology.
This year, the Fed will cut interest rates, which should boost loan activity.Upstart needs to do more to recover.
At a price-to-sales (P/S) ratio of 4, its reasonable valuation may look like a bargain if conditions improve. As AI disrupts the loan evaluation industry, the stock may finally rebound.
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