Upstart Stock Just Crashed (Again) -- Is It Time to Buy?
Fintech company Upstart Holdings (NASDAQ: UPST) is on a mission to improve the lending industry. Its platform collects far more data about prospective borrowers than traditional credit models, and it leans on artificial intelligence (AI) to make sense of that information. That theoretically allows Upstart to quantify the risk more precisely, meaning lenders should see less fraud and fewer defaults.
However, tough macroeconomic conditions led management to lower full-year guidance when the company reported first-quarter results, and the stock price fell by more than 50% in response. Last week, management again lowered guidance when the company posted its preliminary second-quarter results, sparking another sell-off. Upstart stock is now 93% off its high.
Is it time to buy?
Source Fool.com
