A New Problem Is Emerging at Upstart. Should Investors Continue to Hold the Stock?
As expected, artificial intelligence lending company Upstart Holdings (NASDAQ: UPST) reported poor earnings results for the third quarter, missing analyst estimates. The guidance for the fourth quarter is even worse and the stock is tumbling.
Upstart's issues have been well documented at this point. The company needs institutional investors to fund and purchase its loans for it to meet all of the loan demand from borrowers that come to its platform. But higher interest rates and broader economic concerns have pushed investors to the sidelines.
However, on Upstart's third-quarter earnings call, it appeared another issue has emerged for the company. Should investors continue to hold the stock through the turbulence?
Source Fool.com
