Upstart Q4: The Market's Reaction Is Warranted

(10min)

Summary

  • Upstart Holdings has shown significant growth, with a 56% YoY revenue increase and improved net income, despite still being unprofitable.
  • The AI-powered lending platform has automated over 90% of loans, leading to higher approval rates and lower APRs compared to traditional lenders.
  • UPST's Q4 earnings exceeded expectations, with revenue at $219M and a smaller-than-expected net loss, driving the stock up 20%.
  • While risks remain due to high valuation and ongoing losses, UPST's growth trajectory and potential profitability make it suitable for aggressive investors.
Upstart headquarters in San Mateo, CA, USA

JHVEPhoto

Introduction

Upstart Holdings, Inc. (NASDAQ:UPST) is a consumer lending platform that partners with banks and credit unions. Its value-add as a partner to these institutions is its AI-powered risk analysis program, which uses machine learning to evaluate creditworthiness.

Upstart has

This article was written by

5.37K Followers

Writer, registered investment advisor, former economics teacher, with many other hats that I wear.

Learn something new every day.

I am a contributing analyst for the Sungarden Investors Club where I teach investors how to make better portfolio decisions, focusing on risk management, and total return investing. Regularly, I contribute as a co-author with Sungarden Investment Publishing AKA Rob Isbitts, the club's founder.

More About Me

Analyst’s Disclosure:I/we have a beneficial long position in the shares of UPST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About UPST Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on UPST

Related Stocks

SymbolLast Price% Chg
UPST
--