Pagaya Technologies (NASDAQ: PGY) has taken investors on a wild ride after it went public by merging with a special purpose acquisition company (SPAC) in late June. The Israeli fintech company's stock opened at $7 a share on the first day, tumbled below $3 in July, jumped as high as $34.50 earlier this week, but now trades at about $23.

Should investors chase that massive (if volatile) rally? Or is Pagaya merely another "meme stock" which isn't actually supported by a sustainable business?

To approve loans, financial institutions generally assess a customer's FICO score, credit report, and annual income. Pagaya's artificial intelligence (AI)-powered platform looks beyond those basic data points and digs deeper into a customer's previous purchases, online activity, job history, psychological profile, and other proprietary data to craft a more comprehensive profile for lenders.

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Source Fool.com