Why Upstart Stock Lost 31% in September
Shares of Upstart (NASDAQ: UPST) pulled back in September on signs that delinquency rates on its loans could be rising.
There was no direct report from Upstart, but investors reacted to third-party market research and other news that seemed to show poor performance in its loans. That conclusion also makes sense given other signs of a weakening economy, including a sharp slowdown in the labor market.
Investors may also be wary of a repeat of 2022, when the stock crashed as its growth ground to a halt and profits flipped to losses, though that was driven by rising interest rates, which is not what's happening now. Other fintech stocks, including those in the BNPL sector, pulled back on signs of rising credit risk last month as well.
Source Fool.com
