Is Upstart Holdings Stock a Buy?
Upstart Holdings (NASDAQ: UPST) promised to revolutionize lending by making credit available to more borrowers through its artificial intelligence (AI)-based assessment models. The company got off to a blistering start when it went public in late 2020, but the past few years have revealed the cyclical nature of the young company.
The stock peaked at more than $400 in the year after its initial public offering (IPO) and is down 94% from its high. The company has dealt with ebbs and flows in the economy and personal lending market.
Still, there is hope that interest rate cuts from the Federal Reserve could spur lending and provide Upstart's business with a much-needed boost. Credit card debt topped $1.12 trillion in the first quarter at a time when interest rates on credit cards have never been higher. With potentially lower interest rates coming over the next year, consumers could look to personal lenders to consolidate debt balances, which could be a huge opportunity for Upstart.
Source Fool.com
