Upstart: Improved Outlook If Its AI Platform Can Survive Economic Downturn

Feb. 03, 2023 4:00 PM ETUpstart Holdings, Inc. (UPST)AFRM, SOFI
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  • Due to its less stringent credit requirement, UPST has recorded higher loans 30 and 90 days past due thus far.
  • With the reduced availability of market funding, the company also increasingly relied on its balance sheet to fund loan originations.
  • Demand for the auto product remained underwhelming as well, due to the elevated interest rates impacting big-ticket spending.
  • Combined with the raised terminal rates of over 5% through 2023, we think UPST may continue trading sideways in the short term.



The UPST Investment Thesis Remains Shaky

UPST 1Y Stock Price

UPST 1Y Stock Price

Trading View

Based on the price action thus far, Upstart (NASDAQ:UPST) has lost -82.86% of its value over the past year, while moderately bouncing off the December bottom of $12.25 as

Relative Valuation Amongst Start-Up Fintech

S&P Capital IQ

This article was written by

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I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.Prior to Seeking Alpha, I worked as a professionally trained architect in a private architecture practice, with a focus on public and healthcare projects. My qualifications include:- Qualified Person with the Board of Architects, Singapore.- Master's in Architecture from the National University of Singapore.- Bachelor in Arts from the National University of Singapore.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.

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Additional disclosure: The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

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