2023-11-16 06:00:00 ET
Upstart Holdings (NASDAQ: UPST) was an artificial intelligence (AI) stock before it was cool. The company came public near the end of 2020, and it was already successfully monetizing its AI model, which is designed to originate loans for banks and financial institutions.
Upstart stock initially listed at $20 per share but quickly soared to $401 in 2021 on the back of record-low interest rates, which drove surging demand for car loans and unsecured personal loans.
Unfortunately, those trends have reversed because interest rates have climbed at a record pace over the last 18 months. It has crushed demand for credit, tightened lending conditions, and sent Upstart's revenue tumbling.
For further details see:
Can Upstart Stock Recover From Its 94% Plunge? Here Are 3 Positive Signs.