2 Stocks that shown tremendous growth ( Q2 21 earnings) and have potential to go higher

 Hi all,

We are in the midst of earning season again, and this is usually the period which Investors are always worried, as stock prices (usually) follow the earnings. With an earnings miss, the stock can be crashing down to earth whereas for a stock earnings beat, the stock can be seen going to the moon. 

For the last week, there are 2 stocks that have shown exceptional earnings, and have potential to go much higher as they grow their revenue exponentially.

1. UPST 

So in a nutshell, Upstart is a disruptor and provides a lending platform that uses a unique proprietary model driven by artificial intelligence (AI) to determine a borrower's creditworthiness. Quarter 2 results were exceptional, given by the key results below.

• Q2 revenues were $194M > up 1,018% YoY (compared to Q2 2020)- Stunning growth which means a 10X revenue growth, have never seen this kind of results before.
• Quarter on quarter growth is 60% (Meaning Quarter 2 2021 grew 60% from Quarter 1 2021)
• Bank partners originated 286,864 loans totaling $2.8 billion > up 1,605% YoY
• Contribution profit was $96.7M > up 2,171% YoY
• Adjusted EBITDA margin was 31% vs -18% in 2020 Q2

Needless to say, after the quarter's results came out, the stock price surged for few days and analysts adjusted their prices upwards. 

Furthermore, their guidance for 2021 was raised from $600M to $750M which represents 221.3% YoY growth. That is like a revenue raise of 25%, which is pretty unheard of. 

Catalysts that can drive the stock price up would be revenue from autoloans, which UPST acquired a company called Prodigy software to gain exposure to auto financing. 

I am vested at $116, and will look to increasing my holdings on bigger dips. Mentally it is hard to average so much higher upwards.

2. FUBO

The next stock that over delivered and exceeded the revenue expectations was FUBO, another holding of mine. Though the results were not as spectacular as UPST, it was a very amazing quarter as they have defied all expectations. With upcoming catalysts to drive the stock up such as the World Cup Qualifiers, NFL in 2021 and 2022, I can see good things happening for the stock. Furthermore, they are also releasing their sportsbook by year end, which can be a major catalyst for the stock as FuboTV viewers will be able to place bets as they watch sports on FuboTV. 

Their Quarter 2 results were exceptional:

• Total revenue was up 196% Y-O-Y to $130.9 million , from Q2 2020
• Total paid subscribers up 138% Y-O-Y to 681,721, from Q2 2020
• Advertising revenue up 281% year-over-year to $16.5 million, from Q2 2020
• Streaming hours by customers 245 million hours of content during the quarter, a 148% increase year-over-year.

Furthermore, the company raised guidance for Q3 2021 from 126.9 million to 140-144 million. For FY2021, the company raised guidance from 531.7 million to 560-570 million. 

There was a dip as we can see above, as FuboTV raised additional 500 million, to cement their cash balance to increase their cash position. For me, though there is dilution on my holdings, but if the company uses the cash to expand their sportsbook offerings, I think this stock can be a potential multi-bagger at least for the next few years. I am holding on tight for news regarding the sportsbook. 

Hope the above information is useful for the readers, if you find them useful and if you have not yet signed up with Moomoo or Tiger Broker, please use my referral link to sign up for them. These promotions given by these brokers are for a limited time only and I would appreciate the support given to me. 

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