Upstart Stock Downgraded -- Is It Time to Panic?
Upstart's (NASDAQ: UPST) credit risk evaluation platform is taking the banking industry by storm. Despite the rising popularity of its products, shares of Upstart recently tanked after management reported financial results from the first three months of 2022.
Investors were particularly disturbed by the forward-looking guidance management provided. Management had to change its total revenue outlook for 2022 from the $1.4 billion figure provided in February, down to $1.25 billion.
In response to the guidance revision, analysts at Citi and Goldman Sachs were among many who downgraded the stock. Markets hate uncertainty, so the guidance revision and subsequent downgrades pushed Upstart's stock price down 55% the morning after the company's first-quarter earnings call. Here's why savvy investors aren't even close to panicking yet.
Source Fool.com
