Why Upstart Stock Plunged on Thursday

Shares of Upstart (NASDAQ: UPST) stumbled out of the gate on Wednesday and never regained their footing. The stock plunged as much as 23.5% in early trading but eventually ended the day down 18.2%.

The catalyst that sent the AI-based lending platform lower was third-quarter financial results that far exceeded expectations, combined with an impressive increase of its full-year forecast. While it might not make sense on the surface, it's all about context.

Upstart reported revenue of $228 million, up 250% year over year, while total fee revenue clocked in at $210 million, an increase of 235%. This resulted in adjusted earnings per share (EPS) of $0.60.

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Source Fool.com