Upstart Holdings (NASDAQ: UPST) was a stock in freefall just a few months ago. It's still down over 86% in just the past 12 months, and there seemed to be little hope in a turnaround for the fintech stock, given the challenging macroeconomic conditions that exist today.

But in 2023, the stock has been rallying. It was up as much as 80% in early February, though its year-to-date gain has come down to 40% as of this writing. So has the stock finally bottomed out, and is now a good time for investors to buy shares of Upstart? Or is this too risky an investment to be holding in your portfolio regardless?

Upstart is a lending company that uses artificial intelligence (AI) in an effort to make smarter decisions about who to lend to. But amid a worsening economy where defaults are rising and interest rates are also increasing, Upstart is approving fewer loans, while many borrowers aren't in a rush to take out debt. That has negatively affected its business.

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Source Fool.com