UPST - Upstart: I Warned About Its Overhype In December - What's Next (Upgrade)
2024-02-22 13:30:00 ET
Summary
- Upstart Holdings, Inc. faces another highly challenging first quarter as it disappointed investors with a surprisingly weak outlook.
- Upstart Holdings fell more than 30% from its recent highs through this week's lows.
- Upstart needs to sustain investor confidence by forecasting more effectively. Otherwise, these wild swings could continue.
- I highlight why my Sell thesis in December played out accordingly, as the FOMO surge took Upstart Holdings stock to an unsustainable zone.
My Sell thesis on Upstart Holdings, Inc. ( UPST ) has played out nicely since I downgraded UPST from Buy to Sell in December 2023. After stunning the market with a weaker-than-expected Q1 '24 guidance , it seems like the trouble afflicting Upstart isn't over. Moreover, its financial sector ( XLF ) peers have continued their march higher as XLF re-tested its early 2022 highs. UPST bulls likely bet that a soft landing scenario would have benefited the AI lending platform. Unfortunately, it seems like UPST investors were caught in the over-optimism zone. These investors have likely failed to anticipate Upstart management's disappointing guidance and commentary at its recent fourth-quarter earnings release....
Upstart: I Warned About Its Overhype In December - What's Next (Upgrade)