Upstart (NASDAQ: UPST) suffered a 97% decline from its peak in mid-2021 to the end of 2022. Rising interest rates hammered the loan market as consumers became increasingly reluctant to apply for personal and auto loans.

However, so far in 2023, the AI stock has risen by more than 35%, and that has occurred at a time when more banks have taken an interest in its loan evaluator. The question for investors is whether that January recovery means Upstart is finally ready to surge higher again.

Upstart derives most of its revenue from its loan-evaluation tool. The company applies AI to evaluate the creditworthiness of prospective borrowers. It collects a fee for performing this evaluation and (at least until recently) does not typically fund loans itself.

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Source Fool.com