Upstart Stock Is on Fire, but This Could Be a Big Warning Sign
There's no question about it: Upstart (NASDAQ: UPST) has been one of the biggest winners on the stock market this year. Shares of the consumer artificial intelligence lending platform have jumped more than 400% as excitement over AI, signs of an economic recovery, a short squeeze, and a beaten-down share price coming into the year have all contributed to the blowout gains.
Upstart will face its next test when it reports second-quarter earnings on Aug. 8, and the stock may swing wildly on the news, given its historical volatility, the soaring gains this year, and the high number of shares sold short by investors betting on a decline.
The company's own forecast calls for a sequential increase in revenue from the first quarter, but a sharp drop from Q2 2022, when interest rates were much lower and consumer demand for loans was stronger.
Source Fool.com
