Why Upstart Stock Dropped 22% in December

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 ...