Why Upstart Stock Soared 45% in February
Shares of artificial intelligence-powered loan company Upstart Holdings (NASDAQ: UPST) gained 45% in February, according to data provided by S&P Global Market Intelligence. The company, which was one of the hottest stocks of 2021, reported excellent fourth-quarter results in February, and the price had already come down low enough to make the valuation look more attractive.
Upstart markets a platform for lenders to more effectively evaluate borrowers. It works with artificial intelligence and machine learning, which means it runs customer data through thousands of data points to evaluate how much of a credit risk a potential borrower poses. This disrupts the traditional risk assessment tool, the FICO score or similar, which uses a limited subset of data to group individuals into categories. Upstart's model approves more borrowers without increasing risk to the lender.
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Source Fool.com
