Proceed With Caution When Considering This Ultra-Popular Fintech Stock
Upstart Holdings (NASDAQ: UPST), the artificial intelligence (AI)-based lending platform, saw its shares skyrocket in the 10 months after its initial public offering, peaking at a market cap of more than $30 billion in October 2021. That positive sentiment has completely reversed, and the stock is down about 85% this year.
It might be tempting to buy discounted shares in Upstart today. But if you're considering this, it's best to keep some important factors in mind, particularly as many market participants fear that a recession might be on the horizon. Let's take a closer look at what this could mean for Upstart's business.
2021 was a banner year for Upstart. Revenue jumped 264%, and net income surged an astronomical 2,164%. What's more, the company was able to originate 1.3 million loans worth a total of $11.8 billion during the 12-month period. These figures were up substantially from 2020's numbers, which helps explain the stock's meteoric rise.
Source Fool.com
