If You Invested $1,000 in Upstart in 2020, This Is How Much You Would Have Today
The artificial intelligence-powered lending platform provider Upstart (NASDAQ: UPST) is one of the more popular fintech companies to go public over the last several years. The company did an initial public offering (IPO) in December 2020 during a time when tech valuations were starting to take off, and it's been a roller coaster ride ever since. If you had invested $1,000 in Upstart around the time the company went public, here's how much money you would have now.
Since its IPO less than two years ago, Upstart has seen some of the highest of highs and also the lowest of lows. The company believes it can underwrite loans better than traditional credit underwriting methods such as Fair Isaac's FICO scoring. It also claims it can generate 75% fewer loan defaults than traditional banks at the same loan approval rate.
Upstart's platform originates loans that are either purchased by banks and credit unions or sold to investors. The company's main product is unsecured personal lending but it is also ramping up auto lending and plans to apply its technology to other lending categories. Management believes its AI-powered underwriting can identify borrowers with lower FICO scores that are still creditworthy, opening up access to traditional lending products for these borrowers and bringing new customers to financial institutions.
Source Fool.com
