Why Upstart Stock Tanked 26% in December
Shares of artificial intelligence (AI)-based fintech company Upstart Holdings (NASDAQ: UPST) dropped 26% in December according to data provided by S&P Global Market Intelligence. The company is still seeing the fallout from investors disappointed in fourth-quarter guidance as well as a general deflation in fintech stocks due to concerns about the omicron coronavirus variant.
Upstart was one of the biggest stories of 2021, as its AI-based platform won more clients and helped originate millions of loans for borrowers. Revenue skyrocketed early on, growing 90% year over year in the first quarter and then skyrocketing 1,018% in the second quarter, leading to high investor interest and a soaring share price. It's also profitable, and net income roughly tripled in the third quarter from $9.7 million to $29 million year over year.
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Source Fool.com
