Is It Finally Time to Buy Upstart Stock?
The past few years have been tough operating environments for interest rate-sensitive, cyclical industries. One company that encapsulates this struggle is Upstart Holdings (NASDAQ: UPST), the artificial intelligence (AI) consumer lender.
Upstart stock ran up significantly in the months following its December 2020 initial public offering (IPO). The consumer lender benefited from declining interest rates, a backdrop of fiscal stimulus, and strong consumer metrics, and it became profitable right away. However, the past couple of years have been tough for the lender, as it scrambled to find investors in its loans while consumer demand waned.
With the Federal Reserve lowering its benchmark interest rate by 50 basis points in its September meeting, the interest rate easing cycle is officially underway. With rates retreating from multidecade highs, now might be the time to buy Upstart stock. Here's why.
Source Fool.com
