UPST - Why Upstart Stock Jumped 53% in December
2024-01-03 17:25:39 ET
Shares of lending-technology company Upstart (NASDAQ: UPST) jumped 52.7% in December, according to data provided by S&P Global Market Intelligence . As much as the bulls might want to celebrate, the reality is that the company's recent stock performance appears more related to commentary from the Federal Reserve than factors within the business itself.
In December, the Federal Reserve opted to hold interest rates steady. And commentary from members of the committee strongly suggests that rates could get lowered three times this year, which would potentially be good for Upstart's business.
Upstart has developed its own system that it hopes will replace the credit score. The company partners with banks and credit unions to approve more credit-worthy borrowers and provide better rates, and in return the lenders hopefully get fewer delinquencies.
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Why Upstart Stock Jumped 53% in December