Why Shares of Upstart Crashed Today

Shares of the artificial intelligence lender Upstart (NASDAQ: UPST) are trading nearly 20% lower as of 10:20 a.m. ET today after the company announced preliminary second-quarter results that disappointed the market.

Upstart said yesterday that it expects to generate only about $228 million of revenue in the second quarter of the year, which is significantly lower than the $295 million to $305 million it had initially guided for. Furthermore, Upstart expects to lose between $27 million and $31 million in the quarter, also a much wider loss than anticipated.

"Our revenue was negatively impacted by two factors approximately equally. First, our marketplace is funding constrained, largely driven by concerns about the macroeconomy among lenders and capital market participants," Upstart's CEO David Girouard said in a statement.

Source Fool.com