Is This Hot AI Stock Actually as Promising as Everyone Thinks?
Volatility can mess with your mind. It feels easier to trust a stock that slowly and steadily climbs higher without huge drops along the way than a stock that falls more than 90% and then jumps 170% in a matter of weeks.
Yet that's what is happening with Upstart Holdings (NASDAQ: UPST). It rocketed from its $20 initial public offering (IPO) price to more than $400 per share, even as one pundit praised the stock on television but couldn't explain what the company does, and then crashed to $12. And with the help of voracious investor thirst for artificial intelligence (AI) stocks, the AI lender has now nearly tripled from its lows.
Now that you've readjusted your neck from that whiplash, it's time to sort out Upstart's investment prospects. It's OK to be skeptical of a stock that is so volatile, but there are tangible signs that the company can justify its recent hype.
Source Fool.com
