At one point this year, Upstart (NASDAQ: UPST) shares were up an astonishing 445%. But even though the stock has dropped 58% since that recent high, propelled by troubling second-quarter financial results, it has still crushed the broader market in 2023.
Investors have a lot to think about with this fintech company. But before deciding to buy shares, it's best to gain a full understanding of both the good and the bad with this artificial intelligence (AI)-powered lending platform.
Thanks to its use of AI, Upstart is trying to disrupt the lending industry. Its models can better assess a borrower's risk, leading to more accessible credit for those who might be refused at regular banks. Since its founding in 2012, the business has helped originate $34 billion in loans. And as of June 30, Upstart had 100 different lending partners using its technology. By allowing its partners to approve more loans while controlling defaults, Upstart has proven to be a winning solution for all stakeholders.
Source Fool.com