Here's Why Upstart Stock Plunged 37% in June
Shares of Upstart Holdings (NASDAQ: UPST) plunged 37.3% in June, according to data provided by S&P Global Market Intelligence. During the month, special regulatory waivers for the company were terminated at its own request. And some analysts think this could be a near-term drag on revenue, perhaps contributing to its underperformance in June.
To briefly summarize, Upstart partners with banks and credit unions to provide credit based on factors beyond a person's credit score. Borrowers can come to Upstart directly or through a partner's channels.
On June 8, the Consumer Financial Protection Bureau terminated Upstart's no-action letter, something that was requested by Upstart. This had protected the company from charges related to violating fair lending laws. However, its special regulatory treatment limited its ability to make changes to its artificial-intelligence (AI) algorithm.
Source Fool.com
