Core Viewpoint - Upstart Holdings, Inc. (UPST) has experienced a significant decline of 32.1% over the past three months, underperforming the broader Zacks Financial - Miscellaneous Services industry, which fell by only 5.2% [1][5] Company Performance - UPST's stock has been more adversely affected compared to peers like SoFi Technologies (SOFI), LendingClub (LC), and Enova International (ENVA) [1] - The stock is currently trading at a forward 12-month price/sales (P/S) multiple of 3.83X, which is higher than the industry average of 3.48X [6] - Compared to major fintech rivals, UPST trades at a premium to LendingClub (1.15X) and Enova International (0.7X), while being at a discount to SoFi Technologies (4.13X) [8] - Shares have dropped 53% from the 52-week high of $96.43, reached on February 13, and are down 26.5% year to date (YTD) [9] Market Context - The recent decline is attributed more to broader market headwinds, including a tech sell-off and fears of a global economic slowdown, rather than company-specific issues [5] - The decline is viewed as a painful correction rather than a fundamental weakness, suggesting potential long-term value [4][9] Technological Edge - Upstart Holdings utilizes artificial intelligence (AI) to assess borrower creditworthiness, moving beyond traditional FICO scores to include factors like education and employment history [10] - In Q1 2025, 92% of loans processed were fully automated, leading to faster approvals and lower operating costs [11] - The company is expanding into new verticals such as auto loans, HELOCs, and small-dollar emergency loans, with notable growth in auto loan originations (42% QoQ) and HELOCs (52% QoQ) [12] Innovation and Growth - Upstart's AI models are continuously evolving, with the latest model (Model 19) enhancing predictions by tracking borrowers' repayment stages [14] - The conversion rate has improved from 14% to 19% year over year, indicating effective technology [15] - Total revenues increased by 67% year over year to $213 million, with a non-GAAP EPS of 30 cents, a significant improvement from a loss of 31 cents in the previous year [16] Future Outlook - The Zacks Consensus Estimate for 2025 indicates a robust year-over-year revenue growth of 59%, with an EPS forecast of $1.46, up from a loss of 20 cents in 2024 [17] - Despite trading at a relatively high valuation, the core growth story remains intact, suggesting that holding the stock may be advisable for long-term investors [18]

Upstart Holdings, Inc. (UPST) shares have plunged 20% over the past month and underperformed the Zacks Financial - Miscellaneous Services industry, which is down 10%. UPST stock has also underperformed other fintech competitors, including SoFi Technologies (SOFI) , LendingClub (LC) and Enova International (ENVA) . UPST One-Month Price Return Performance This steep decline raises the question: Should investors cut their losses and exit, or is the stock worth holding onto? While the near-term headwinds are re ...

Upstart Holdings (UPST) and SoFi Technologies (SOFI) are the two well-known names in the fintech industry. However, the two companies have radically different business models and market strategies. With investor enthusiasm fluctuating wildly in response to shifts in interest rates and economic uncertainty, the question remains: Which stock offers the smarter bet today?Upstart Holdings: A High-Risk, High-Reward DisruptorUpstart Holdings has built its brand around using artificial intelligence (AI) and machin ...