Pagaya: A Much Better Valuation, but Questions Remain
In previous articles I've written about the artificial intelligence (AI)-assisted lending platform Pagaya (NASDAQ: PGY), I expressed concerns about the company's formerly high valuation for two main reasons.
The first was regarding the stock's incredibly small public float after completing its merger with a special purpose acquisition company, which ultimately took it public. The other had to do with macroeconomic concerns that I thought might impact its business model. Since early August, shares of Pagaya have plummeted from close to $30 to about $1.14 now.
But the business has actually held up better through the third quarter than I might have expected and the valuation is clearly much more attractive. Still, I think questions remain about how well the company can perform in the future. Here's why.
Source Fool.com
