This AI Stock Just Crashed More Than 55%. Should You Buy?
If you were invested in any stock with a hint of artificial intelligence (AI) technology, you've had incredible returns in 2023. But more recently, you've likely started to feel the pain of a sell-off. Take Upstart (NASDAQ: UPST), for example. At its peak, the stock was up an astounding 445% in 2023 alone. However, thanks to the recent market pullback, it has plummeted 55% from its highs in August alone, although it's still up 150% for the year.
But that begs the question: Was this a case of a hot stock cooling off? Or is this a great buying opportunity for getting in on a stock you missed? Read on to find out.
Upstart is a leader in the credit approval space. Instead of using a traditional FICO score that only assesses a few factors, Upstart deploys AI to better assess if a consumer may default on their debt. These additional factors include education, bank account balances, and work history, and do a better job of telling lenders how likely the borrower is to default.
Source Fool.com
