UPST - Upstart: Red Flags Of The AI Model And The Company's Response

2024-02-07 16:04:31 ET

Summary

• Upstart's AI model has struggled to accurately predict credit events during tight economic conditions, leading to underperformance and a decline in loan value.
• The company has made improvements to its AI models, including increased accuracy and personalized timing curves, to better predict credit events in the future.
• Upstart's financial performance is tied to macroeconomic conditions, and a delayed recovery is expected, making 2024 a challenging yet transformative period for the company.

I invested in Upstart Holdings, Inc. ( UPST ) back in 2021 when the stock was trading for around $100. In just a few months following my investment, UPST stock shot through the roof to $400, but I did not book my gains as I truly believed in the company's technological superiority after conducting deep research into its AI model and discussing the nuances of this tech stack with industry leaders....

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