In Dec. 2020, Upstart Holdings (NASDAQ: UPST) listed on the stock market priced at $20 per share. In less than 12 months, it rocketed to an all-time high of $401.49, delivering a gain of more than 1,900% for investors who backed its initial public offering. 

If you've just checked the tape, don't worry, you're not dreaming. Upstart stock has in fact collapsed by 95% and is once again trading at around $20. The retreat can be partially attributed to the decline in the broader technology sector with the Nasdaq-100 index currently trading in a bear market. But Upstart's business is also being challenged by the tougher economic climate.

To understand why, let's take a look at what the company does and how its recent stock-price drop could be a buying opportunity. 

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Source Fool.com