Monday’s stock market slump quickly gave way to a rally in the stock market. Nasdaq Composite (NASDAQINDEX: ^ IXIC) today. Although early afternoon gains were somewhat capped at around two-thirds of a percent, the Nasdaq nonetheless showed its continued superiority by posting larger percentage gains than its other major indexes.
Helping to raise the Nasdaq was another big leap for Holdings reached (NASDAQ: UPST), as the fintech disruptor hit a new record. However, the news was not all good for Nasdaq stocks; Pinnacle Business (NASDAQ: APOG) has given way. Below, we’ll take a closer look at what made the two stocks move.
Another new partner for Upstart
Upstart Holdings shares rose 10%, topping $ 320 per share. The innovative artificial intelligence-based lending platform provider has announced another deal that has shown its potential for long-term growth to come.
Upstart has partnered with WSFS Financial‘s (NASDAQ: WSFS) banking unit. WSFS Bank has launched a digital personal loan product that Upstart’s AI lending platform will power. With nearly two centuries of serving banking clients, WSFS has characterized this movement as a component of its broader efforts to invest in technology to meet the changing needs of its clients. WSFS hopes its new personal loan solution will be more affordable for its customers around Philadelphia and the Delaware River Valley.
The move is just the latest new partnership that Upstart has recently entered into. This move responds to a concern of Upstart investors, with its early reliance on a small number of banking partners, raising fears that Upstart may not be adopted by the entire lending industry.
Upstart is locked in hypergrowth mode, and any move it makes to strengthen its revenue potential should be welcomed by shareholders. For now, Upstart is in its ascent, and despite an expensive valuation, the stock may continue to rise as more investors believe in its future prospects.
Walking on broken glass?
Meanwhile, shares of Apogee Enterprises fell 9%. The maker of architectural glass and other products released second quarter financial results that left investors wanting more.
Apogee’s figures showed the difficulties faced by the company. Revenue increased only 2% year-on-year to $ 326 million. Additionally, adjusted earnings fell 27% to $ 0.53 per share, which was somewhat lower than most of those following the stock expected to see.
Like many manufacturers, Apogee has faced significant levels of inflation in the costs of the materials it needs to deliver its services. Additionally, supply chain challenges caused lingering problems for Apogee, and the company also suffered from sluggish construction markets which kept activity levels well below those enjoyed by Apogee. before the onset of the pandemic in early 2020.
The good news for Apogee, however, was that the company benefited from segment gains in a few key businesses. Revenues from architectural services rose double-digit percentages as Apogee resolved some of its backlog projects. The large-scale, relatively small optical segment also performed well. Investors should hope that these areas will provide the catalysts Apogee will need to more fully recover from its recent crisis.
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