3 Reasons I'm Buying More Upstart Stock
Upstart (NASDAQ: UPST) has been taking the lending world by storm with its artificial-intelligence-based loan approval engine. The company uses thousands of data points to gauge people's creditworthiness for personal loans -- and now auto loans -- but it leaves out one of the major metrics that has historically been used for that purpose: the FICO-based credit score. Upstart is looking to provide a better alternative to the traditional credit score, which for many people poorly represents the actual risk they pose to a lender.
What's special about Upstart is that it simply sells its decisions to banks looking to lend to consumers who have lower credit scores. As such, 94% of its revenue has no credit risk. The company reported its fourth-quarter earnings on Feb. 15, and the strong results showed that it has a viable route to becoming the new financial industry standard for determining creditworthiness. This stock is one that I wouldn't even think about selling, and I might even buy more soon.
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Source Fool.com
