2023-11-19 07:05:00 ET
Upstart 's (NASDAQ: UPST) artificial intelligence-based lending business presents investors with an intriguing opportunity to invest in the future as it takes on traditional lending practices. The fintech got off to a blistering start, with the stock reaching $400 per share within a year of its initial public offering (IPO) in 2020. Since then, the stock price has fallen 94% as the company deals with the effects of rising interest rates, which dampened demand for its product.
The discounted price suggests the stock is a potential buy for those who believe in the business model. But if you're considering buying the fintech today, there are five things you should consider first.
Upstart wants its artificial intelligence (AI) lending model to change consumer lending as we know it. The company leverages AI technology to more accurately price risk, and its management believes this model gives more consumers access to loans while providing partner lending institutions with less risk when compared to Fair Isaac 's FICO credit scores.
For further details see:
5 Things You Need to Know If You Buy Upstart Stock Today