There's no doubt about it: Rising interest rates and the waning of the pandemic have ravaged AI lending marketplace Upstart (NASDAQ: UPST). At its peak in late 2021, Upstart stock surpassed $360 per share, a price that valued the company at more than $30 billion. Since then, the stock has tumbled about 95%.

Upstart ran into major problems as economic uncertainty ramped up. It's had trouble unloading some of its loans, leading the company to start holding a substantial volume of loans on its own balance sheet. This exposes Upstart to interest rate risk. It has also seen loan volumes collapse as the economic environment takes its toll.

In the first quarter of 2023, the company made just over 82,000 personal loans, with a total transaction volume of $952 million. Those figures were down 82% and 78%, respectively, from the prior-year period, and down 46% and 36%, respectively, from Q4 of 2022. Upstart generated just $102.9 million in revenue, down 67% year over year, and the company booked a net loss of $129.3 million.

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Source Fool.com