Core Viewpoint - Upstart Holdings, Inc. has experienced a significant stock surge of 71.1% over the past three months, outperforming the broader tech sector and the S&P 500, raising questions about future growth potential [1] Company Performance - Upstart's recent success is closely linked to macroeconomic expectations regarding U.S. Federal Reserve policy, particularly interest rates, which directly impact its personal and auto loan business [2][4] - The company's annual revenue run rate has halved to around $1 billion due to aggressive interest rate hikes by the Federal Reserve, which aimed to curb inflation but adversely affected loan origination demand [3] Interest Rate Impact - The Federal Reserve's recent shift in policy, including a 50 basis point rate cut to a range of 4.75%-5%, is viewed as a lifeline for Upstart, potentially revitalizing its loan origination business [4][6] - A falling interest rate environment is expected to increase loan demand, allowing Upstart to regain lost business and expand its market share [7][8] AI and Innovation - Upstart's competitive advantage lies in its innovative use of AI, which automates the loan approval process, with 91% of loans being fully automated as of Q2 2024, enhancing efficiency compared to traditional lenders [9][10] - The company's AI capabilities enable it to assess a broader range of borrower profiles, allowing it to offer lower annual percentage rates (APRs) to riskier borrowers without compromising credit performance [10][11] Financial Outlook - Despite recent gains, Upstart's valuation remains attractive, trading at a discount compared to industry averages, with a closing price of $39.74 as of September 20, significantly below its all-time high of $390 [12] - The Zacks Consensus Estimate projects strong revenue growth, with expected sales of $566.15 million for the current year and $687.15 million for the next year, reflecting a year-over-year growth of 10.24% and 21.37% respectively [13] Conclusion - Upstart's unique positioning in the fintech space, combined with favorable interest rate trends and its AI-driven platform, suggests continued growth potential, making it an attractive opportunity for growth-oriented investors [15][16]

Upstart Holdings, Inc. (UPST) shares rallied 7.3% in the last trading session to close at $37.69. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 13.2% loss over the past four weeks. The optimism surrounding the stock can be attributed to Upstart's growing partner network. The company's artificial intelligence (AI)-based lending platform has been selected by several banks and credit unions, which is contribut ...

Upstart is slated to boom if the Federal Reserve cuts rates. All eyes will be on Federal Reserve Chairman Jay Powell when he announces what the Fed is planning to do with interest rates during its Sept. 17 and 18 meeting. It's a foregone conclusion that there will be at least some rate cut, but nobody knows how much. As a result, some consumers may hold off on purchases until after rates start to fall, something that could massively benefit a few companies. One stock that could go parabolic if the Fed cuts ...

U.S. stock futures were mixed this morning, with the Dow futures gaining around 100 points on Monday. Shares of iTeos Therapeutics, Inc. ITOS fell sharply in today's pre-market trading. The company announced follow-up interim data from GALAXIES Lung-201. iTeos Therapeutics shares dipped 13.7% to $14.40 in pre-market trading. Here are some big stocks recording losses in today's pre-market trading session. Vizsla Silver Corp. VZLA shares fell 11.4% to $1.94 in pre-market trading. Vizsla Silver announced a $65 ...

Core Viewpoint - Upstart Holdings is poised for a recovery in growth, which may lead to an increase in its stock price after experiencing significant declines due to rising interest rates and reduced consumer demand for loans [1][2][16] Company Overview - Upstart Holdings went public in 2020 at a price of $20, reaching over $400 within 10 months due to low interest rates driving loan demand [1] - The company utilizes artificial intelligence to transform the lending industry, having invested in AI for over a decade [4] Lending Model - Upstart's AI algorithm evaluates over 1,600 variables for creditworthiness, resulting in more than double the loan approvals compared to traditional methods and an average interest rate that is 38% lower [6] - The latest model, M18, enhances accuracy by running over 1 million predictions for each applicant, significantly improving the loan pricing process [7] Automation and Efficiency - In Q2, 91% of loan approvals were automated, leading to a threefold increase in the conversion rate for instant approvals [8] Financial Performance - Upstart generated $127.6 million in revenue during Q2, a 6% decline year-over-year, but showed signs of stabilization with a 34% increase in personal unsecured loans originated [9] - The company forecasts $150 million in revenue for Q3, representing an 11% increase from the previous year [11] Funding and Partnerships - Upstart faced challenges in funding but has added two new credit partners and regained some previous institutional partners, indicating improved funding conditions [12][13] - The company operates in a market with $831 billion in annual originations for personal and automotive loans, and has recently introduced a home equity line of credit product, expanding its market opportunities [14] Valuation - Upstart's stock is currently trading at a price-to-sales ratio of 6.3, which is 29% below its long-term average since going public [14]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momen ...

VioletaStoimenova Lending platform Upstart Holdings (NASDAQ:UPST) has seen its share price rebounding this year. A move of over 60% in the last three months has the stock in the green for 2024. In this article, I will highlight the short interest in the company and the potential for a short squeeze. Upstart management leans on a "comeback story" Upstart released its second-quarter earnings on August 6 and the stock surged after impressing analysts with raised guidance. "These wins and more are providing the ...

Upstart Holdings, Inc. (UPST) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Shares of this company have returned +16.7% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Computers - IT Services industry, to which Upstart belongs, has gained 1.9% over this period. Now the key question is: Where could the stock be headed in the near ...

Userba011d64_201 Upstart Holdings, Inc. (NASDAQ:UPST) just published its Q2 24 earnings report on August 6th and its share price exploded about 50% intraday to end the day roughly 40% in the green. On first sight, this seems like a rather large bite off the cake and immediately, authors here on SA published negative comments, judging this to be excessive and unjustified. However, after looking at the report and listening to the earnings call, I believe there is merit to the run-up. Sure, the earnings were j ...

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. ...