Core Viewpoint - Upstart Holdings, Inc. (UPST) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Upstart indicates expected earnings of -$0.62 per share for the fiscal year ending December 2024, reflecting a year-over-year decline of 10.7% [9]. - Over the past three months, analysts have raised their earnings estimates for Upstart by 8.7% [9]. Zacks Rating System - The Zacks rating system is based on changes in a company's earnings picture, which is a critical factor for stock price movements [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [8]. - Upstart's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [12][11]. Impact of Institutional Investors - Institutional investors utilize earnings estimates to determine the fair value of stocks, and changes in these estimates can lead to significant stock price movements [5]. - The rising earnings estimates for Upstart indicate an improvement in the company's underlying business, which is expected to positively influence its stock price [6]. Conclusion - The Zacks rating upgrade for Upstart reflects an optimistic earnings outlook, which could lead to favorable stock price movements in the near future [4][12].

Core Viewpoint - Upstart Holdings reported strong third-quarter results, leading to a 53% increase in stock price, but caution is advised as the stock remains volatile and significantly below its previous highs [1][2][9]. Financial Performance - Revenue for the third quarter increased by 20% year over year, reaching $162 million, surpassing guidance of $150 million [3]. - Adjusted loss per share was $0.06, better than Wall Street's expectation of $0.15, and the net loss improved to $6.8 million from $40.3 million the previous year [4]. - Adjusted EBITDA turned positive, with management expecting continued growth in this area [4]. Operational Improvements - Management attributed the positive results to internal system improvements rather than low interest rates, which only began to take effect at the end of the quarter [5]. - Upstart has upgraded its machine learning systems, resulting in efficiency improvements and cost savings [5]. Market Position and Growth - The company added 24 new lending partners in the current year and is experiencing growth in auto loans, which increased by 46% year over year [6]. - Upstart's new home equity line of credit (HELOC) product has originated 600 loans without defaults, covering 55% of the population [7]. Economic Context - The economic environment is becoming more favorable for Upstart, with expectations of lower interest rates and a strong job market [10]. - Despite the recent stock surge, Upstart's stock is still 80% below its all-time highs, indicating significant volatility [9]. Investment Considerations - Upstart stock is considered high-risk, with a price-to-sales ratio of 12, which is elevated compared to faster-growing companies [11]. - Analysts are divided on the stock, with about a third rating it as a sell at current prices [11].

Upstart uses artificial intelligence to make lending decisions.The most significant risk for Upstart (UPST -7.83%) in 2024 was a severe recession that could increase default rates among borrowers.*Stock prices used were the afternoon prices of Nov. 8, 2024. The video was published on Nov. 10, 2024. ...

Core Insights - Upstart (NASDAQ: UPST) reported stronger than expected Q3 earnings, driven by robust demand for its personal and auto loan products [1] - The fintech company exceeded both top and bottom line estimates by a significant margin [1] Financial Performance - The earnings report indicates a favorable performance, suggesting a positive trend in the company's financial health [1]

Company Performance - Upstart's revenue increased by 20% in Q3 to $162 million, surpassing analyst expectations, with CEO David Girouard stating the company is in "growth mode" [2] - Toast's stock has more than doubled this year, with an adjusted earnings forecast of $90 million to $100 million for the current quarter, exceeding estimates [2] Market Trends - Both Upstart and Toast experienced significant stock rallies, with Upstart soaring 46% and Toast jumping 14% following better-than-expected results [1][2] - The overall market saw a rally after Donald Trump's election victory, with the Nasdaq index rising 5.7% for the week, marking its second-best week of the year [3] Cryptocurrency Sector - Coinbase shares surged 48% for the week, bolstered by significant political contributions and potential regulatory changes favorable to the crypto industry [4] - Robinhood's stock rose 27% for the week, despite receiving a Wells Notice from the SEC, indicating ongoing regulatory scrutiny [5] - Bitcoin reached a new intraday high above $77,300, ending the week 11% higher, with other cryptocurrencies like Ether and Solana also outperforming Bitcoin [5] Other Fintech Companies - Block, the parent company of Square, reported Q3 revenue that fell short of Wall Street expectations, resulting in a slight stock drop [6] - Affirm, despite beating revenue and earnings estimates, saw its stock decline by 4.7% on Friday, although it remained slightly ahead of the Nasdaq for the week [6]

Core Insights - Upstart Holdings, Inc. reported a revenue of $162.14 million for Q3 2024, marking a year-over-year increase of 20.5% and exceeding the Zacks Consensus Estimate by 8.14% [1] - The company reported an EPS of -$0.06, which is an improvement compared to -$0.05 a year ago, and surpassed the consensus EPS estimate of -$0.14 by 57.14% [1] Financial Performance Metrics - Transaction Volume reached $1.58 million, exceeding the average estimate of $1.30 million from two analysts [3] - Revenue from fees, net was reported at $146.76 million, slightly below the average estimate of $155.07 million from five analysts, showing no year-over-year change [3] - Total interest income, interest expense, and fair value adjustments, net was reported at -$12.20 million, worse than the estimated -$5.13 million, with no year-over-year change [3] - Revenue from platform and referral fees, net was $134.20 million, surpassing the average estimate of $121.69 million, reflecting a year-over-year increase of 19.4% [3] - Revenue from servicing and other fees, net was $33.39 million, in line with the average estimate of $33.38 million, but showing a year-over-year decrease of 2.7% [3] Stock Performance - Upstart's shares have returned +28.5% over the past month, significantly outperforming the Zacks S&P 500 composite's +4.9% change [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

Upstart's earnings show the company is firmly back in growth mode.Shares of artificial intelligence (AI)-powered lender Upstart (UPST 42.87%) rocketed 43.3% Friday, as of 11:25 a.m. ET.Upstart reported earnings yesterday evening showing improved results, likely due to inflation and interest rate expectations coming down. However, from today's reaction, it appears the positive results and guidance were even better than contemplated by investors heading into earnings.Fintech personal lending is turning around ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | --- | |-------------------------------------------------------------------------|---------------------------------------------------------- ...

Upstart Holdings, Inc. (UPST) closed at $51.11 in the latest trading session, marking a +1.37% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.33% for the day. Meanwhile, the Dow experienced a drop of 0.22%, and the technology-dominated Nasdaq saw a decrease of 0.56%.Shares of the company witnessed a gain of 33.46% over the previous month, beating the performance of the Finance sector with its loss of 5.18% and the S&P 500's gain of 1.83%.Analysts and investors alike wi ...

The Federal Reserve cut interest rates for the first time since 2020. Upstart (UPST 2.08%) stock has rallied in recent months, going from as low as $20 per share in August to over $55 per share at the time of this writing. Despite its recent rally, however, it remains 86% below its all-time high price of $401 per share in October 2021. Consumer lenders have struggled with the higher interest rate environment over the past several years, but things look like they could be turning a corner. Last month, the Fe ...