Why Upstart Holdings Fell 12.6% This Week
Shares of artificial intelligence (AI)-powered lending platform Upstart (NASDAQ: UPST) fell 12.6% this week, in another difficult period for fintech stocks.
There wasn't any particular news out of Upstart this week. In fact, the stock was even initiated at "Buy" by a sell-side research firm on Wednesday. Nevertheless, macroeconomic concerns, specifically around very hawkish commentary from the Federal Reserve, have hurt Upstart's stock this week and over the past six months.
As an exciting and high-growth fintech stock, Upstart has the worst of both worlds in today's market. Because it fancies itself a "disruptor" and displays super-high revenue growth, it was bid up to a high valuation. Even though the stock has lost 75% of its value over the past six months, it still trades at an expensive 68 times earnings and 42 times next year's earnings.
Source Fool.com
