If You're Bullish on Upstart Stock, This News Should Be Really Disturbing
Upstart (NASDAQ: UPST) stock continues to enchant the market despite the company's intense struggles. Investors are holding onto its long-term potential like a lifeline, envisioning the way this company's tech could change the lending industry. Although its stock has fallen by more than 60% from its 52-week high in August, it's still up nearly 100% year to date.
Beyond its disappointing performance this year, though, there are other indications that things may not all be OK in Upstart-land.
Upstart went public at the end of 2020, during a bull market and in a period with a record number of initial public offerings (IPOs). It stood out from the pack due to its disruptive business, immense potential, and incredible growth. In one quarter, sales increased more than 1,000% year over year. Upstart's stock price reflected confidence in its use of artificial intelligence to help lenders assess consumer creditworthiness, but its valuations reached astronomical levels, and it was almost set up to deflate at any sign of distress.
Source Fool.com
