Upstart Stock Just Tanked. Should You Buy the Dip?
Upstart (NASDAQ: UPST) stock has been one of the biggest winners on the stock market, jumping more than 300% at one point on an extended short squeeze, signs of a macroeconomic rebound, and excitement about artificial intelligence.
However, that rally came to an abrupt halt on Tuesday after Upstart reported second-quarter results. The stock fell nearly 20% after hours as the company beat estimates in the quarter, but offered disappointing guidance for the third quarter.
Revenue fell 40% year over year to $135.8 million but improved sequentially, a sign that the business is recovering from the worst of the macroeconomic slowdown, or the tightening credit market that resulted from the rapid increase in interest rates over the last year and a half. Analysts had expected revenue of $135.3 million.
Source Fool.com
