This Stock Dropped 47% in the Past 4 Weeks and Could Be a No-Brainer Buy During the Nasdaq Correction

Core Insights - Upstart has experienced significant stock price volatility, with a notable recovery following strong earnings reports, but has recently faced a sharp decline [1][2] Business Performance - Upstart reported a 56% year-over-year revenue growth and a 68% increase in loan volume in the fourth quarter, despite challenging economic conditions [3] - The company's net loss has narrowed significantly, and adjusted margins have improved [3] - Investor demand for loans is increasing, with Upstart securing $1.3 billion in new commitments from partners to purchase originated loans [4] Conversion and Loan Volume - Upstart's loan conversion rate improved to 19.3% in the fourth quarter from 11.6% a year ago, indicating a positive trend in loan approvals [5] - The company is expanding into auto loans and home equity lines of credit (HELOCs), with auto loan volume tripling year-over-year and HELOC volume growing 59% sequentially in the fourth quarter [6] Market Opportunities - The auto loan market in the U.S. is valued at $677 billion, while the home loan market is $1.4 trillion, presenting substantial growth opportunities for Upstart [7] - Americans currently hold approximately $35 trillion in home equity, suggesting potential demand for HELOCs as interest rates decline [7] Future Outlook - Upstart anticipates achieving its first billion-dollar revenue year and expects to at least break even on unadjusted net income, a milestone not reached since 2021 [8] Stock Valuation - Despite recent stock price declines, Upstart's stock is trading at approximately 6.5 times trailing-12-month revenue, the lowest price-to-sales multiple since October [10] - The stock has lost nearly half its value from its 2025 high, yet there has been no negative news regarding the company's business [10]