Why Upstart Stock Is Plummeting This Week
Upstart (NASDAQ: UPST) is pulling back this week. The fintech company's share price was down 19.9% from last week's market close as of 11:30 a.m. ET, according to data from S&P Global Market Intelligence.
Investors who were hoping that the Federal Reserve was done raising interest rates got some bad news this week. With inflation still running relatively hot, Federal Reserve chairman Jerome Powell confirmed that the central banking organization anticipates additional rate hikes this year. Expectations for rates to continue rising triggered substantial sell-offs for many companies with growth-dependent valuations, including Upstart.
Upstart has posted explosive gains over the last month, and it's not surprising to see the stock give up some ground in light of an increasingly hawkish outlook on rates. Even with the sell-offs this week, the company's share price is still up roughly 130% year to date. The fintech has benefited from excitement surrounding artificial intelligence (AI), but ongoing macroeconomic pressures may be set to test just how smart the company's platform really is.
Source Fool.com
