Why Upstart Rocketed 14% Higher Today
Shares of fintech platform Upstart (NASDAQ: UPST) rocketed 13.7% higher on Monday.
The company, founded in 2012 and public since late 2020, has long predicated itself on the use of AI to better underwrite loans. However, since late 2021, the former highflier has experienced a brutal drawdown, as buyers of Upstart's loans fled the platform in droves amid high inflation and fears of a recession. That led not only to the stock being taken to the woodshed, but for its short interest to rise to a whopping 32.5% of shares outstanding as of the end of June.
However, financial and fintech stocks appear to be rising today as well as other economically sensitive stocks especially harmed by rapidly rising interest rates. This is likely due to some better-than-expected inflation readings last week, while job growth remains robust.
Source Fool.com
