So far in 2023, shares of Upstart (NASDAQ: UPST) are up a whopping 88% (as of May 26), boosted by first-quarter revenue and earnings per share that beat Wall Street estimates. Investors appear to be warming up to the stock again, which is still down an eye-watering 94% from its all-time high set in October 2021.
With recently reported financial results that were well received by the market, and a stock price that is clearly riding some strong momentum, is Upstart stock a buy right now? Here's why I think investors might actually want to hold off on purchasing shares today.
To be fair, every business is affected at least a little by whatever the macroeconomic situation is. But in Upstart's case, this is amplified. In 2021, for example, interest rates were low and credit markets were robust, supporting higher demand for loans from borrowers. Upstart's revenue that year jumped 264% year over year, and its net income of $135 million was up 2,164% versus 2020. It helps explain why the stock was up 271% in 2021, even after a huge fall at the end of the year.
Source Fool.com