2 Reasons to Sell Upstart Stock Right Now
Artificial intelligence (AI) lending marketplace Upstart (NASDAQ: UPST) is having a lot of trouble navigating the current economic environment. Demand for loans is way down, partly due to higher interest rates. Upstart's partners originated $1.2 billion of loans in the second quarter, down 64% year over year.
There were some bright spots in Upstart's second-quarter report. For one, the company bounced back from an extremely weak first quarter. Upstart generated revenue of $136 million, up from just $103 million last quarter. The bad news, though, is that there won't be much improvement in the third quarter, as Upstart expects to generate revenue of $140 million.
Shares of Upstart have soared this year as investors bet on the company's turnaround, although some of those gains were undone on Wednesday following the company's lackluster guidance. Still, the stock looks like one to avoid for a few reasons.
Source Fool.com
