Why I'm in No Hurry to Buy Upstart Stock
Bear markets present investors with stocks that trade at a deep discount to previous valuations. But just because something is cheap doesn't necessarily mean you're getting a bargain. Upstart Holdings (NASDAQ: UPST) is one beaten-down stock that I'm in no rush to buy.
Upstart went public in 2020 and saw its stock price explode as it strung together several profitable quarters in a row. But since peaking at more than $400 per share, the stock has fallen 95% and trades below its initial public offering (IPO) price. This year, the consumer lender has faced challenges that have been significant headwinds to the business. Here's why I'm avoiding the stock for now and what I want to see before buying.
Upstart is on a mission to improve the economics of the lending industry. The company says countless people are left out of the lending ecosystem because of inherently flawed risk models.
Source Fool.com
