Upstart Holdings (NASDAQ: UPST) stock had a tremendous run last year, gaining 105% since the start of 2023. The company found relief when it was able to secure funding for its artificial intelligence (AI)-powered loans, and the stock bounced off its low price of around $12 per share and hasn't looked back since then.
Despite its massive rally, Upstart stock is still 93% below its all-time high price of $401 per share in October 2021. Upstart's AI-lending model has the potential to upend legacy credit scoring systems, but the company faces headwinds today that investors should understand. Let's examine them.
Image source: Getty Images.
Source Fool.com