Upstart's Struggles Should Give This Rival a Big Boost
The artificial-intelligence lending platform Upstart (NASDAQ: UPST) disappointed investors with third-quarter results of $0.30 in diluted earnings per share (EPS) on total revenue of $228 million from more than $3.1 billion in loan originations.
The results weren't exactly bad, as both EPS and revenue beat analyst estimates. However, management's guidance implied that profits would slow in the fourth quarter, and with Upstart trading at nearly 450 times earnings prior to the third-quarter report, there wasn't a lot of room for missteps.
The disappointing quarter, however, should be very beneficial for one of Upstart's competitors, LendingClub (NYSE: LC), a digital marketplace bank also providing installment loans. Here's why.
Source Fool.com
