NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of Upstart, Inc. (NASDAQ: UPST) breached their fiduciary duties to shareholders. If you currently own Upstart stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more about your legal ri. ...

Upstart is down 27% during the past 30 days, which might be an opportunity for investors.Upstart Holdings (UPST +3.41%) developed an artificial intelligence (AI) algorithm to perform credit assessments on potential borrowers. It can analyze more data and deliver faster approvals than traditional assessment methods, so a growing number of banks are using it to originate their consumer loans.However, Upstart stock has plummeted by 27% during the past 30 days, as some U.S. regional banks have flagged potential ...

Core Insights - Certain Wall Street analysts predict that shares of Upstart and Atlassian could see triple-digit returns in the next year despite their year-to-date declines of 15% and 30% respectively [1][2] Upstart Holdings - Upstart is an AI lending platform that enhances credit risk assessment by analyzing over 2,500 data points per applicant, improving accuracy compared to traditional FICO score systems [4] - The platform automates underwriting and optimizes customer acquisition, fraud detection, and default forecasting, allowing lending partners to approve more borrowers at lower interest rates [5] - Upstart's loans originated since Q2 2023 are projected to yield 11.3% annually, outperforming 10-year Treasury bonds by 7 percentage points [5] - In Q2, Upstart's total revenue surged 102% to $257 million, primarily driven by personal loans, which constitute 90% of total originations [6] - Non-GAAP net income improved to $0.36 per diluted share from a loss of $0.17 per diluted share year-over-year [6] - Wall Street anticipates Upstart's adjusted earnings to grow at 66% annually through 2027, making its current valuation of 60 times earnings appear relatively cheap [7] - Hal Goetsch from B. Riley Financial set a target price of $105 per share for Upstart, indicating a 102% upside from its current price of $52 [8] Atlassian - Atlassian specializes in work management and service management software, with its flagship product Jira being widely adopted across various departments [10] - The company was recognized by Gartner as a leader in work management software for both development and operations teams, providing a competitive advantage [11] - Atlassian has introduced AI agents to enhance productivity for both technical and non-technical teams, positioning itself well to benefit from AI advancements [12] - In Q4 of fiscal 2025, Atlassian reported a 22% revenue increase to $1.3 billion and a 48% rise in non-GAAP earnings to $0.98 per diluted share [13] - The adoption of AI products grew by 50% to 2.3 million monthly active users [13] - Atlassian's addressable market is estimated at $67 billion, expanding at 13% annually, with adjusted earnings expected to increase at 19% annually through fiscal 2027 [14] - Morgan Stanley set a target price of $320 per share for Atlassian, suggesting a 101% upside from its current price of $159 [8]

Core Viewpoint - AI software stocks experienced a decline on Wednesday, with notable drops in several key companies [1] Company Summaries - C3.ai (AI.US) saw a decline of over 4% [1] - Lemonade (LMND.US) also dropped by more than 4% [1] - Upstart (UPST.US) experienced a significant decrease of over 6.9% [1] - Palantir (PLTR.US) fell by more than 6% [1] - Duolingo (DUOL.US) declined by over 2.8% [1]

Core Viewpoint - Upstart is experiencing a resurgence in growth after a period of volatility and declining revenue, with favorable macroeconomic conditions and improved financial performance indicating a potential investment opportunity [1][4][5]. Group 1: Company Performance - Upstart's stock price has decreased by 23.5% year to date, but it trades at an attractive valuation of 19 times forward one-year earnings, suggesting a good entry point for investors [1]. - After two years of declining revenue, Upstart's revenue more than doubled year over year in the second quarter, and transaction volume increased by 159% [5]. - The company regained profitability on a GAAP basis a quarter earlier than expected, indicating a positive turnaround [5]. Group 2: Macroeconomic Factors - The Federal Reserve's prime lending rate and market interest rates have started to decline, which is beneficial for borrowers and enhances the lending environment [4]. - Lower interest rates facilitate loan repayments and reduce default risks, allowing Upstart to better identify creditworthy candidates for lenders [4][6]. Group 3: Future Outlook - The Federal Reserve is expected to cut the federal funds rate two more times before the end of the year, which should support Upstart's growth trajectory [6]. - Management anticipates a 73% year-over-year increase in sales for the third quarter, with a projected net income of $9 million [6]. - Upstart has significant long-term potential in the credit evaluation market, valued at $1 trillion, making it an attractive investment for risk-tolerant investors [7].

Core Insights - Upstart Holdings, Inc. (NASDAQ:UPST) is recognized as one of the 12 best fintech stocks to buy according to analysts, despite recent market pullbacks in consumer finance stocks due to concerns over subprime credit trends [1][2]. Company Overview - Upstart Holdings, Inc. operates a cloud-based AI lending platform in the US, partnering with banks and credit unions to provide various loan products, including personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar relief loans [4]. Market Conditions - Citizens has reaffirmed its Market Perform rating for Upstart, citing isolated indications of rising delinquencies among selected subprime auto and personal loan lenders, which includes Upstart as one of the affected companies [2]. - The lending market is increasingly focusing on undocumented borrowers, contributing to a cautious outlook for consumer lenders like Upstart [2]. - Additional factors affecting the outlook include speculation over the resumption of student loan repayments and renewed focus on tariff impacts on prices [3].

Core Insights - Upstart Holdings, Inc. (UPST) experienced a decline of 2.69% in its recent trading session, closing at $46.50, which is significantly lower than the S&P 500's gain of 0.53% on the same day [1] - The company has seen a substantial loss of 29.78% over the past month, underperforming compared to the Finance sector's loss of 2.23% and the S&P 500's gain of 0.71% [1] Earnings Forecast - Upstart Holdings is set to release its earnings report on November 4, 2025, with an expected EPS of $0.42, reflecting an 800% increase from the same quarter last year [2] - Revenue is projected to reach $281.02 million, indicating a 73.32% increase compared to the year-ago quarter [2] Full Year Projections - For the full year, earnings are estimated at $1.66 per share and revenue at $963.44 million, representing increases of 930% and 51.36% respectively from the previous year [3] - Recent analyst estimate revisions suggest a favorable outlook on the company's business health and profitability [3] Analyst Ratings and Valuation - The Zacks Rank system currently rates Upstart Holdings as 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [5] - The company is trading at a Forward P/E ratio of 28.79, which is a premium compared to its industry's Forward P/E of 12 [6] Industry Context - The Financial - Miscellaneous Services industry, to which Upstart belongs, ranks in the top 37% of all industries according to the Zacks Industry Rank [6] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Upstart Holdings (UPST) is expanding its services beyond personal loans, leveraging its AI-powered platform to enter new markets such as auto loans, home equity, and small-dollar credit, with these segments accounting for nearly 20% of new borrowers in Q2 2025 [1][8] - The company has more than doubled its revenues year over year and achieved GAAP profitability earlier than expected [1] Auto Lending - Auto loan originations surged 87% sequentially to $114 million in Q2 2025, driven by the adoption of Upstart's Auto Retail software among car dealerships [2][8] - A focus on simplifying financing has led to increased dealer-driven loan requests and finalized agreements [2] Home Equity - The home equity segment has seen a nearly ninefold increase in originations year over year, reaching $68 million, facilitated by advancements in instant property verification technology [3][8] - This technology allows borrowers to complete ownership and income checks in under a minute, streamlining the traditionally slow HELOC process [3] Small-Dollar Loans - Small-dollar "relief" loans have increased by 40% sequentially as Upstart tests its AI models across a broader borrower base [4] - The latest underwriting model, Model 22, has improved accuracy and conversion rates, supporting the growth of these new verticals [4] Diversification Strategy - Upstart plans to move most Auto and Home loans off its balance sheet by late 2025, relying on third-party funding and partnerships with banks and credit unions to support this diversification [4] Industry Comparisons - Other fintech companies like PayPal and Intuit are also diversifying their revenue streams, with PayPal expanding into merchant solutions and consumer credit, while Intuit has developed a full financial ecosystem [5][6] Valuation and Performance - Upstart's shares have increased by 16.8% over the past six months, although this performance lags behind the broader industry and the S&P 500 [7] - The current forward 12-month Price/Sales (P/S) ratio for Upstart is 3.77X, which is above the industry average of 3.52X, indicating that the shares may be overvalued [9] Earnings Estimates - The Zacks Consensus Estimates for EPS for the full years 2025 and 2026 have been revised downward, but they still indicate significant year-over-year increases [10]

Core Insights - Upstart Holdings Inc (UPST) has experienced a significant market loss of nearly 24%, placing it on Barchart's one-month losers list, with a technical opinion indicator rating of 56% Sell, indicating a weakening short-term outlook [1][2] - Wall Street analysts have a consensus rating of Hold for UPST shares, with three analysts rating it as Strong Sell, reflecting a negative sentiment towards the stock [2] - Over the past year, UPST's equity has lost 3.48%, further indicating a downward trend [2] Quantitative Analysis - UPST stock has a negative bias, with an exceedance ratio of only 46.4% over a 10-week period since its public market debut, suggesting limited profitability potential [5] - The projected price range for UPST stock is between $47 and $53, with most outcomes expected to cluster between $48.50 and $50.50, while the stock closed at $51.07 [5] - Despite the negative outlook, a quantitative signal suggests that there may be potential upside for UPST stock in the near future [3][6] Volatility Insights - Volatility in UPST stock is influenced by current market conditions, with the principle that tomorrow's volatility is largely dependent on today's volatility [6][7] - Near-term market stimuli have a more significant impact on stock performance compared to older stimuli, which is a fundamental concept in financial data science [7]

Core Insights - The fintech landscape in 2025 is dynamic, with PayPal and Upstart leading in digital payments and AI-driven lending respectively [1][2] PayPal Overview - PayPal is expanding its ecosystem through strategic partnerships, new payment features, and increased adoption of Venmo, with Venmo revenues rising over 20% and total payment volumes growing 12% [4][6] - The company is integrating AI-driven commerce tools through collaborations with Google, Salesforce, and Anthropic, and is positioning itself for emerging digital commerce trends with the PYUSD stablecoin and crypto payment options [5][6] - PayPal's BNPL partnership with Blue Owl Capital and holiday promotions offering 5% cashback illustrate its innovative approach to boosting transaction volume [6] Upstart Overview - Upstart's AI-powered lending platform has led to significant revenue growth, with Q2 2025 revenues reaching $257 million, more than double year-over-year, and loan originations at $2.8 billion, the highest in three years [7][8] - The company returned to GAAP profitability with $5.6 million in net income, compared to a $54.5 million loss in the prior year, and contribution profit rose 85% to $141 million [8][9] - Upstart is diversifying beyond personal loans, with auto originations growing sixfold and home segment nearly ninefold, representing over 10% of total loan volume [9][10] Financial Estimates - The Zacks Consensus Estimate for PayPal's 2025 sales and EPS implies year-over-year increases of 3.92% and 12.47% respectively, with EPS estimates trending upward [12] - Upstart's 2025 sales are expected to rise by 51.36%, although EPS estimates for 2025 and 2026 have been revised downward [13] Valuation Comparison - PayPal shares are trading at a low valuation with a Value Score of A, while Upstart shares are considered overvalued with a Value Score of F [16] - PayPal's forward Price/Sales ratio is 1.91X, below its three-year median of 2.16X, while Upstart's is 3.98X, also below its three-year median of 4.08X [16] Performance Analysis - Over the past six months, Upstart shares have outperformed PayPal, which has underperformed the S&P 500 composite [17] Conclusion - PayPal combines scale, diversified products, and strong user engagement, making it a more reliable choice for investors seeking lower volatility [21][22] - Upstart's rapid growth in AI-driven lending is notable, but its exposure to credit-sensitive borrowers introduces volatility [20][22]