UPST - Why Upstart Stock Plunged 19% in February
2024-03-07 09:51:10 ET
Shares of Upstart Holdings (NASDAQ: UPST) stock fell 19% in February according to data provided by S&P Global Market Intelligence . The credit evaluation platform reported earnings and guidance that disappointed investors.
Upstart operates a credit evaluation platform driven by artificial intelligence . It boasts that it can identify more borrowers for lenders without increasing risk, and creditors were taken with this idea before interest rates went through the roof. However, the platform may not work as well under current circumstances, and Upstart's business has been feeling the pain.
It's been in a downward spiral for more than a year, and it didn't get any relief in the 2023 fourth quarter. Revenue declined 4% year over year, its sixth straight quarter of declines. Transaction volume was down 19%. Net loss was $42.4 million, an improvement from $55.3 million last year.
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Why Upstart Stock Plunged 19% in February