Upstart (NASDAQ: UPST) has taken shareholders for a roller coaster ride since going public in 2020. The company started with a bang, and the stock climbed to $355 per share at one point. However, high interest rates and low demand for its loans weighed on the company.

Last year, things showed signs of turning around, but it continued to see slower demand for its loans compared to pandemic levels. Upstart's artificial intelligence (AI) lending models have the potential to upend consumer finance as we know it, but there are several things to consider before investing in this stock.

Upstart's founders believe that traditional credit scoring systems, like Fair Isaac's FICO® scoring system, fail to accurately identify risk and therefore prevent otherwise worthy people from borrowing. Its mission is to upend this legacy scoring system and make lending accessible to more individuals through its AI-powered lending models.

Continue reading

Source Fool.com