Here's Why Upstart Soared on Wednesday While Most Stocks Fell
The stock market was having a pretty dismal day on Wednesday. The Dow Jones Industrial Average was on pace for its worst one-day loss since 2020, and the S&P 500 was down by 4% as of 3 p.m. ET.
In contrast to the overall market, lending technology company Upstart Holdings (NASDAQ: UPST) was a major outperformer, with shares rising by about 6%.
Upstart recently plunged by more than 50% after its first-quarter earnings, and the biggest reason was that the dollar amount of loans carried on Upstart's balance sheet more than doubled. The company defended this as a standard part of its business model as it rolls out new types of loans, but investors took it as a major risk factor.
Source Fool.com
