Why Upstart Rocketed 44% Higher So Far This Week
Shares of fintech loan platform Upstart (NASDAQ: UPST) rocketed 44% higher through Thursday of this week, according to data from S&P Global Market Intelligence.
The struggling fintech reported better-than-feared earnings amid operational improvements, along with a more optimistic outlook for the back half of the year. Given that the company has been thoroughly beaten down, about 95% below its 2021 highs, the stock rocketed higher on prospects for a turnaround.
Upstart's model is to use artificial intelligence to underwrite personal and auto loans to customers who may be overlooked by banks or other financial institutions, then to sell those loans to loan buyers. The problem Upstart has seen since 2021 is that as interest rates increased rapidly, its loan purchasers fled the platform. Moreover, the dramatic shift to an inflationary environment caused Upstart's loans to slightly underperform in 2022.
Source Fool.com
