AI-Powered Lending Lifts Pagaya Technologies Stock (PGY) to Multiyear Highs
Artificial Intelligence (AI) transforms industries and cancels completely new business models. In the lending sector, a few companies show this transformation like Pagaya Technologies (PGY). She benefited from artificial intelligence to lead her platform, Pagaya delivered explosive growth-almost double ATS shares from one to date-and has reached profitability before the expectations of many analysts.
I am optimistic about the stocks because of its strong upward potential and attractive evaluation of the industry peers. This seems to be a rare opportunity to invest in a profitable fuse and AI engine at an attractive price.
Think about Baghaya as an intelligent broker for the world of lending. The company does not provide loans to consumers directly. Instead, it takes advantage of advanced data modeling and artificial intelligence to enhance the ability of financial institutions to make the most enlightened lending decisions more quickly and accurately of traditional methods.
This approach has created a strong network effect. Pagaya now works with more than 31 lending partners, all contributing data that makes artificial intelligence more intelligent. The more partners they add, the better their algorithms, which makes it difficult for competitors to catch up with a knee.
What makes this commercial model especially attractive is the fee -based revenue structure. Pagaya earns money from transactions and does not take the same credit risks. They were also smart on diversification, expanding personal loans to car financing and lending to selling points to reduce their dependence on any one market sector.
Moreover, its network is used to secure lending assets with more than 132 institutional investors. The company received $ 6 billion through assets backed in 2024, becoming a leading source of the absolute value of the personal loan in the United States. In the first quarter of 2025, it issued $ 1.4 billion through three transactions, including AASA Aasare Lovance ABS and AA AA ABS, with requirements for 4-5 % expected risks on ABS for a personal loan.
The results of Pagaya were distinguished in the first quarter of 2025 with the first positive net income ever, a milestone that reached a full quarter before the specified date. Total revenue reached $ 290 million, which represents a 18 % significant growth on an annual basis. More importantly, fee revenues have grown by 19 %, indicating that basic works are shot on all cylinders.
