Strong Earnings Drive Nasdaq FinTech Index 1.7% Higher
With one day left in March, the Nasdaq index dropped 10%, wiping the year-to-date gains and leaving it at 8.5%. Oportun, OppFi, Huize, Affirm, and Futu Holdings are just some of the firms that have shown advances in the last five trading days. Oportun jumped by 17% after the CFPB (Consumer Financial Protection Bureau) announced it would not propose legal action against the firm after an inquiry into its collecting practices and hardship program during the pandemic.
After reporting a 16% increase in the fourth quarter, Huize revealed that renewal charges were up by over 81%.
The company reported that the default rate for new clients’ initial payments decreased by 29% from the 2nd quarter before credit changes were made. Despite a 16% decline in total premiums written for the Chinese insurance business as a whole, the number of clients served climbed to over 8.4 million. With 25% year-over-year growth in overall revenue to $120 million and flat net loans originated with $187 million. As per the trending stock news, shares of OppFi rose by 14.4%.
The overall number of Futu Holdings’ paying customers rose by 19.5% year over year to 1.5 million, contributing to the company’s 7.3% growth. The overall number of customers who have signed up has risen to 3.2 million, a 17.5% increase from the previous year. The fourth quarter of 2022 had a 12.7% annual decline in daily average revenue trades but a 42.3% annual gain in revenues to $292.3 m.
The launch of Apple’s BNPL effort, Apple Pay Later, which allows consumers to divide purchases into four installments over six weeks without incurring interest or penalties, contributed to a 7.6% increase in Affirm’s share price. Apple Wallet now allows users to apply for, receive, manage, and repay loans ranging from $50 to $1,000 for usage on the iPhone and iPad.
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