10 Best Tech Stocks to Invest In On the Dip

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1. Pagaya Technologies Ltd. (NASDAQ:PGY)

Share Price: $10.58

Year-To-Date Performance: -32.18%

Analyst Upside Potential: 118.22%

Pagaya Technologies Ltd. (NASDAQ:PGY) is a financial technology (FinTech) company based in Israel. In simple terms, the company uses advanced technology, including data science, machine learning, and artificial intelligence (AI), to help lending companies assess the creditworthiness of potential customers quickly and accurately. The AI technology allows lenders to evaluate customers’ credit in real-time, which helps them make informed decisions about who to approve for loans.

It provides solutions for various types of loans, such as personal loans, car loans, and credit card loans. They primarily serve lending institutions around the world, enabling them to expand their customer base while minimizing risk.

The company has been focused on expanding its network base and partnerships. During the third quarter results of fiscal 2024, the company reported a network volume of $2.4 billion, reflecting an 11% year-over-year increase. This growth was supported by existing partnerships, particularly in personal loans, which grew 15% and point-of-sale loans which improved 67% compared to the previous year. It achieved a record total revenue of $257 million, marking a 21% increase year-over-year, primarily due to a 24% rise in fee revenue.

Net losses remain one of the concerns for management of Pagaya Technologies Ltd. (NASDAQ:PGY), which is mainly due to non-cash expenses and one time costs. The net losses have caused the stock price to go down by 32.18% on a year-to-date basis. However, CEO Gal Krubiner stated that the company is on track to achieve GAAP profitability and positive cash flow by 2025, driven by effective execution of their 2024 strategy, which entails adding new partnerships and network volume.

Looking ahead, management projects full-year 2024 network volume between $9.5 billion and $9.7 billion, with total revenue expected between $1.01 billion and $1.025 billion. It is one of the best tech stocks to invest in on the dip.

While we acknowledge the potential of Pagaya Technologies Ltd. (NASDAQ:PGY) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for a promising AI stock that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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