Upstart Holdings (UPST -2.50%) has been on a roller coaster since its initial public offering (IPO) in 2020. The lender, powered by artificial intelligence (AI), aims to democratize borrowing for a wide range of consumers.However, its business model has faced challenges, navigating peaks and valleys as investor interest in its loans dipped before experiencing a recent resurgence. With the prospect of falling interest rates in the last year, there has been increased interest in hopes that consumer lenders li ...

Upstart's AI Technology and Market Potential - Upstart has been utilizing AI technology since its founding over a decade ago, giving it a competitive edge in the financial services industry [1] - The company's AI platform analyzes 1,600 variables to assess borrower creditworthiness, enabling individuals with poor traditional FICO scores to qualify for loans at lower rates [3] - Upstart's AI-driven approach allows banks and credit unions to approve more loans without increasing default risk [3] Market Opportunity and Expansion - Upstart operates in personal, auto, and home loan markets, which collectively see trillions of dollars in annual loan origination activity [2] - The company has facilitated approximately $40 billion in loans historically, indicating significant growth potential [2] - Upstart's total addressable market is estimated at $3 trillion in annual loan originations [8] Financial Performance and Challenges - Upstart's Q3 revenue was $162 million, a 29% decline compared to the same period three years prior [7] - The company reported an operating loss of $45 million in the latest quarter [7] - Upstart's financial performance has been cyclical, not resembling that of a hyper-growth tech business [6] Competitive Landscape and Client Concentration - Three financial institutions accounted for 71% of Upstart's revenue in the first three quarters of 2024 [8] - Major US banks (JPMorgan Chase, Bank of America, Wells Fargo, Citigroup) control a significant portion of lending activity with $10 trillion in combined assets [9] - These large banks have resources to invest in their own AI and digital capabilities, potentially challenging Upstart's market position [10] Valuation and Investment Considerations - Upstart's market capitalization stands at $5.4 billion [7] - The company trades at a price-to-sales ratio of 9.4, considered high for its industry [11] - Upstart's business is highly exposed to macroeconomic factors, particularly interest rate fluctuations [5]

Shares of Upstart (UPST -1.71%) dropped 21.9% in December, according to data provided by S&P Global Market Intelligence. And as of this writing, it's down another 7% year to date in 2025. Interestingly enough, the drop seems to be correlated with changes to the federal funds rate on Dec. 18.For those unaware, Upstart's business is sensitive to changes in interest rates. Its platform seeks to increase approvals for borrowers while simultaneously lowering risk to lenders. But its revenue has been cut in half ...

Company Performance - Upstart Holdings, Inc. (UPST) closed at $63.52, reflecting a -0.87% change from the previous day's closing price, underperforming the S&P 500 which gained 0.55% [1] - The upcoming earnings disclosure is anticipated to show an EPS of -$0.05, representing a 54.55% increase year-over-year, with expected quarterly revenue of $180.03 million, up 28.31% from the same period last year [2] Analyst Estimates - Recent changes in analyst estimates for Upstart Holdings, Inc. are crucial as they indicate shifts in near-term business trends, with upward revisions suggesting analysts' positive outlook on the company's operations and profit generation [3] Zacks Rank and Valuation - Upstart Holdings, Inc. currently holds a Zacks Rank of 2 (Buy), with no changes in the Zacks Consensus EPS estimate over the past month [5] - The company has a Forward P/E ratio of 100.13, significantly higher than the industry average of 10.24, indicating it is trading at a premium compared to its peers [6] Industry Context - The Financial - Miscellaneous Services industry, to which Upstart belongs, is part of the Finance sector and currently holds a Zacks Industry Rank of 57, placing it in the top 23% of over 250 industries [6][7]

Upstart Holdings, Inc. (UPST) , an artificial intelligence-driven fintech company, has witnessed a remarkable 67.4% gain year-to-date (YTD). This performance has significantly outpaced the Financial Select Sector SPDR Fund (XLF) and the S&P 500, which have risen 29.1% and 25.4%, respectively. While the rally raises concerns about valuation, Upstart’s strong fundamentals and evolving market dynamics make it an attractive buy for now.YTD Price Return PerformanceImage Source: Zacks Investment ResearchInterest ...

Group 1 - Upstart Holdings, Inc. is a cloud-based AI lending company that has been viewed positively for over two years [1] - The company operates in a sector that is increasingly focused on cash flow and growth prospects [2] Group 2 - Crude Value Insights provides an investing service centered on oil and natural gas, emphasizing cash flow generation [2] - The service aims to identify companies with real potential for value and growth in the oil and gas industry [2]

Upstart (UPST 9.57%) has been on a major upswing as of late. Since early August, shares of this artificial intelligence (AI)-powered lending platform have skyrocketed 92% (as of Dec. 11), driven by seriously improving market sentiment.While that gain makes this fintech stock a better performer than the Nasdaq Composite Index, Upstart still trades an alarming 80% below its all-time high from late 2021. If you're considering buying the dip, take the time to know these three things about Upstart first.1. Tryin ...

Artificial intelligence (AI) lending stock Upstart Holdings Inc (NASDAQ:UPST) is surging today, up 9.2% at $84.20 at last glance, following an upgrade from Needham to "buy" from "hold." The firm cited a better funding balance, and set its price target at $100, a level not seen since 2022. Today's pop has UPST nearing its Nov. 11 two-year high of $86.07, with support from the ascending 20-day moving average. Longer term, UPST is outperforming with a 102.4% year-to-date gain. Options traders are eyeing Upstar ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

The shares of artificial intelligence (AI) lending marketplace Upstart Holdings Inc (NASDAQ:UPST) are down 13.9% at $67.83 at last glance, after a downgrade from J.P. Morgan Securities to "underweight" from "neutral," though the firm also added a price-target hike to $57 from $45. The analyst in coverage expects the funding environment to improve in 2025. Pacing for its worst single-day percentage loss since February, Upstart stock is pulling back from its Nov. 11, two-year high of $86.07. Shares are testin ...