3 Reasons Upstart Is Overvalued
The stock for artificial-intelligence lending fintech Upstart Holdings (NASDAQ: UPST) has been on a monstrous run. Since going public at the very end of 2020, Upstart's stock price has risen to $327 and is up a whopping 643%.
Upstart uses AI and data to evaluate the true risk of a loan, and the company claims it can lower loss rates at U.S. banks by almost 75%. Currently, Upstart is in the business of originating personal loans, but it is also preparing to dive deep into the auto loan market. The company partners with banks to originate the loans and then sells those loans to institutional investors, or the originating bank might choose to retain the loan on its balance sheet.
Source Fool.com
