2023-06-14 13:08:22 ET
Upstart ( NASDAQ: UPST ) stock price recovery continued as it jumped to the highest level since June 2022. The shares have jumped by more than 215% from the lowest level in 2022. This recovery has brought its total market cap to over $3 billion.
Technology stocks rebound
The strong recovery of the Upstart share price coincides with the recent performance of other technology companies. Some of the top companies that came on the verge of collapsing in 2022 like Carvana, Wayfair, and Rent the Runway have all jumped recently.
Upstart stock price recovery was buoyed by the strong earnings, which I wrote about here . The results showed that the company’s revenue from fees dropped by 66% year-on-year to $117 million. The figure was much better than the consensus view among analysts. Its net revenue was $103 million since its net interest revenue was minus $14M.
The company’s management hopes that the revenue for the second quarter will be about $135 million while its net income will be minus $40 million. In a statement, the CEO said :
“Our improving guidance is clearly not deriving from obvious improvements to the macro economy just yet. It is flowing from a combination of tenacious execution, operating discipline, margin expansion, and deal-making.”
Upstart stock price also jumped after the company decided to offload about $4 billion worth of loans too Castlelake. Castlelake is a leading private equity firm with over $20 billion in assets. This measure came after the company said that it had reached about $2 billion in financing that will provide it adequate capital to lend.
Upstart share price rose on Wednesday after analysts at BTIG started covering the company with a positive outlook. The analyst is also bullish on other fintech companies like SoFi, Jack Henry & Associates, and PayPal.
Upstart stock price forecast
The daily chart shows that the UPST stock price has been in a strong bullish trend in the past few weeks. As it jumped, the shares jumped above the key resistance point at $26.42, the highest level since February 2nd of this year.
The Upstart share price has moved above the 25-day and 50-day moving averages. At the same time, the Relative Strength Index (RSI) moved above the overbought level. Therefore, the shares will likely continue soaring as buyers target the next key resistance point at $50. The stop-loss of this trade will be at $26.42.
The post Upstart stock price forecast: Is it safe to buy UPST shares now? appeared first on Invezz .