Why Upstart Stock Lost 10% in August
Shares of Upstart Holdings (NASDAQ: UPST) were pulling back last month as the artificial intelligence (AI)-based consumer loan origination platform posted strong results in its second quarter, but a falling take rate, doubts about macro pressures around inflation, and a high valuation seemed to prompt a post-earnings sell-off.
Still, signs increased last month that interest rates could come down, which would be favorable for Upstart, as that would encourage more borrowing. But by the end of August, the stock was down more than 10%, according to data from S&P Global Market Intelligence.
As you can see from the chart, the stock recouped some of those early losses, but still finished down double digits.
Source Fool.com
