UPST - 1 Stock I Wouldn't Touch With a 10-Foot Pole
2024-04-16 07:45:00 ET
After a quick run-up early this year, the S&P 500 has lost some of its gains. Economists are walking back some predictions for easing inflation and interest rate cuts, and it's unclear where the economy will be by the end of 2024.
It's a good reminder that what happens in the world and the economy is never a given. When you consider stocks that could rally when the economy improves, that needs a lot of context. Is it likely to rally because of purely external issues? Will it jump despite operational deficiencies? How long can a company benefit from an economic shift?
Upstart Holdings (NASDAQ: UPST) demonstrated rapid growth before inflation hit and interest rates soared. Even as investors became enamored and the stock skyrocketed, some remained skeptical about how Upstart could perform under more challenging conditions. Indeed, the business went from booming to bust. Even though you could argue that it will recover when the economy does, it still looks too risky to buy right now.
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1 Stock I Wouldn't Touch With a 10-Foot Pole