UPST - The 93% Plunge in This Stock Proves Artificial Intelligence (AI) Doesn't Guarantee Positive Returns for Investors
2024-02-24 07:30:00 ET
Stocks like Nvidia , Microsoft , C3.ai , and Advanced Micro Devices (to name a few) have surged over the past year. Much of those returns have been driven by one thing: artificial intelligence (AI).
In fact, Goldman Sachs says a record-high 36% of all companies in the S&P 500 mentioned AI in their conference calls with investors in the fourth quarter of 2023. Clearly, there's a belief this technology will attract investors.
However, Upstart Holdings (NASDAQ: UPST) proves AI isn't always a magic bullet. Its stock went public in 2020 at $20 per share. It surged over 2,000% to an all-time high of $401 in less than a year, but it has since lost 93% of that value to trade at just $26.19 as of this writing -- despite being one of only a few companies successfully monetizing AI.
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The 93% Plunge in This Stock Proves Artificial Intelligence (AI) Doesn't Guarantee Positive Returns for Investors