StockStory Favors Upstart, Flags Concerns at Adobe and Bandwidth

StockStory singled out Upstart as its preferred pick among three stocks it reviewed, while raising concerns about Adobe and Bandwidth. The publisher’s assessment cited Upstart’s loan originations and expected revenue growth.

Upstart’s platform originations grew an average of 54.3% over the last year, according to StockStory. The publisher also noted expected revenue growth of 30.8% over the next 12 months and forecast positive free cash flow next year.

For Adobe, StockStory pointed to average billings growth of 11.9% over the last year and estimated sales growth of 9.4% over the next 12 months. It also said the company’s operating margin had not increased over the past year.

StockStory cited Bandwidth’s 11.9% annual revenue growth over the last two years and gross margin of 37.2%. It said the company’s operating margin was unchanged over the last year.

The article noted that software stocks had returned 45.5% over the previous six months, outperforming the S&P 500 by 24.4 percentage points. It also warned that AI could make some software products less differentiated.