Last year, Upstart Holdings (NASDAQ: UPST) faced challenges in finding buyers for the loans its AI-powered platform approved. The fintech company also saw a drastic slowdown in consumer lending, with muted demand for its offerings from banking partners, which added to its struggles.

Some of these problems were alleviated in May when Castlelake, a global alternative investment manager, agreed to buy up to $4 billion in loans from Upstart. The news triggered a massive rally in the stock, which gained more than 400% in a few short months.

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Source Fool.com