Upstart Stock Is Down 94%, But Is It Time to Buy?
Upstart Holdings (NASDAQ: UPST) has proven hypersensitive to the broader economic environment this year, amid rapidly rising interest rates. The company uses an artificial intelligence (AI)-driven algorithm to help banks originate loans, although Upstart also sells some of the loans to investors. But the worse the economy has performed, the more challenged that business model has become.
Plus, as can be expected, demand for credit among consumers is declining, which has dealt Upstart a double whammy.
Upstart stock is down 95% from its all-time high, and while its financial results for the third quarter were relatively weak, the company has laid a stronger foundation for growth. The question is, are investors too pessimistic at the moment? Let's explore.
Source Fool.com
