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 ...

Group 1 - Upstart Holdings Inc (NASDAQ:UPST) stock is experiencing a surge of 9.2%, reaching $84.20, following an upgrade from Needham to "buy" from "hold" [1] - Needham cited a better funding balance and set a price target of $100, a level not seen since 2022 [1] - The stock is nearing its two-year high of $86.07, supported by the ascending 20-day moving average, and has a year-to-date gain of 102.4% [1] Group 2 - Options traders are actively engaging with Upstart stock, with 42,000 calls and 21,000 puts exchanged, which is triple the typical options volume [2] - The most popular options contract is the weekly 12/13 85-strike call, with new positions being opened [2] - Despite a reduction in short interest, it still represents 27% of the stock's available float, indicating potential buying power for further upward momentum [2]

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 ...

Core Viewpoint - Upstart has rebounded from a significant decline in stock price due to its innovative AI-driven loan origination platform, which is positioned to capture a substantial market opportunity in the lending industry [1][3][14]. Company Overview - Upstart went public in December 2020 at $20 per share and saw its stock price surge to $401 within a year due to low interest rates [1]. - The stock price fell 97% to around $12 in 2022 as the Federal Reserve raised interest rates, reducing consumer demand for loans [2]. - As of now, Upstart's stock price has recovered to approximately $78, though it remains 80% below its all-time high [3]. AI-Driven Lending Transformation - Upstart's AI algorithm evaluates 1,600 metrics to assess borrower creditworthiness, significantly improving the speed and accuracy of loan decisions compared to traditional methods [5]. - The company automates 91% of loan decisions, allowing for a more efficient process [5]. - Upstart's AI model, Model 18, makes 1 million predictions per applicant, enhancing the fairness and accuracy of interest rate determinations [6]. Market Position and Growth - Upstart's AI approach enables it to approve double the number of loans compared to traditional methods, with interest rates approximately 38% lower on average [7]. - The company has expanded its offerings beyond unsecured personal loans to include secured car lending and home equity lines of credit (HELOC) [8]. - Demand for loans is increasing as interest rates decline, which is beneficial for Upstart's growth [8]. Financial Performance - In Q3 2024, Upstart originated 186,786 unsecured personal loans, a 65% increase year-over-year, and 1,080 car loans, which was up 53% from the previous quarter [11]. - The company reported total revenue of $162 million in Q3 2024, a 20% increase from the same period last year, marking its highest quarterly revenue for the year [13]. - Upstart is projected to achieve $587.5 million in total revenue for 2024, a 14% increase from 2023, with further growth expected to $812.7 million in 2025, representing a 35% growth rate [15]. Valuation Metrics - Upstart's current price-to-sales (P/S) ratio is 12.4, above its long-term average of 8.9, but the forward P/S ratio based on 2025 revenue forecasts is 8.8, slightly below its average [16]. - The company has identified a $3 trillion annual loan origination market across various segments, indicating significant growth potential [16][17]. - Upstart has only originated around $40 billion in loans to date, suggesting substantial room for future expansion [17].

Core Viewpoint - Upstart Holdings, Inc. has seen significant stock performance, with a return of +55.7% over the past month, outperforming the S&P 500's +3.8% and the Zacks Financial - Miscellaneous Services industry's +12.6% [1] Earnings Estimates - For the current quarter, Upstart is expected to report a loss of $0.05 per share, reflecting a +54.6% change from the same quarter last year, with the Zacks Consensus Estimate increasing by +20.4% over the last 30 days [4] - The consensus earnings estimate for the current fiscal year is -$0.62, indicating a year-over-year change of -10.7%, with an increase of +8.9% in estimates over the last month [4] - For the next fiscal year, the consensus earnings estimate is $0.64, representing a +203.8% change from the previous year, with a +33.3% increase in estimates over the past month [5] Revenue Growth - The consensus sales estimate for the current quarter is $180.22 million, indicating a year-over-year change of +28.4% [8] - The revenue estimates for the current and next fiscal years are $597.66 million and $770.62 million, reflecting changes of +16.4% and +28.9%, respectively [8] Recent Performance - Upstart reported revenues of $162.14 million in the last quarter, a +20.5% year-over-year increase, with an EPS of -$0.06 compared to -$0.05 a year ago [9] - The company exceeded the Zacks Consensus Estimate for revenues by +8.14% and had an EPS surprise of +57.14%, beating consensus EPS estimates in each of the last four quarters [10] Valuation - Upstart is graded F in the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [14]