Shift4 shares surge 11% on earnings beat as fintech stocks climb on results and upgrades

Jared Isaacman, the CEO of Shift4 Payments, was present at the New York Stock Exchange on June 3, 2021.

The fintech sector experienced significant activity on Tuesday as new earnings reports and analyst assessments stirred strong reactions among companies. Shift4 Payments and Upstart Holdings saw substantial increases in their stock prices following positive news, while PayPal saw a modest rise in its shares despite posting impressive earnings.

Shift4’s stock soared by over 10% after announcing better-than-expected first-quarter results and raising its full-year guidance. The company reported adjusted earnings of $1.07 per share, surpassing the anticipated 71 cents per share. Despite first-quarter sales of $848 million falling short of the estimated $868 million, Shift4 projected an adjusted EBITDA of $853 million for 2025, up from $843 million, with end-to-end payment volume hitting $45 billion, exceeding expectations.

Upstart Holdings also experienced a surge after Bank of America upgraded its stock rating to neutral from underperform and set a price target of $53. Analysts highlighted positive signs of recovery, particularly in Upstart’s diversified loan portfolio, which is expected to offer more stable volumes. Upstart has expanded its market reach beyond subprime borrowers, enhancing its loan products and boosting investor confidence.

Meanwhile, PayPal reported mixed results, with shares rising by 1.5% post-earnings announcement. Revenue slightly missed estimates, but Venmo showed a 20% increase in revenue year over year, indicating progress in monetizing the platform. Venmo’s revenue growth outpacing its payment volume growth highlights its potential as a revenue driver for PayPal. Despite initial negative reactions, analysts anticipate a rebound in PayPal’s stock, emphasizing the company’s positive performance metrics and reiterated growth targets.

In conclusion, the fintech market witnessed notable developments with Shift4 Payments, Upstart Holdings, and PayPal showcasing resilience and growth potential in the sector.