Upstart CEO: AI-powered lending creates far better product for consumer
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
an hour ago
- CNBC
CNBC Markets Now: August 8, 2025
CNBC Markets Now provides a look at the day's market moves with commentary and analysis from Michael Santoli, CNBC Senior Markets Commentator.
Yahoo
2 hours ago
- Yahoo
1 Reason to Buy Upstart (UPST)
Key Points There's a lot to like about Upstart, as its business has grown nicely despite a difficult environment. Upstart's loan data shows that its model does a superior job of predicting credit losses. While Upstart mostly originates personal loans, there's a more exciting opportunity. These 10 stocks could mint the next wave of millionaires › After a turbulent couple of years following the interest rate spikes of 2022, Upstart's (NASDAQ: UPST) business has grown nicely. In fact, despite the persistent high-rate environment and economic uncertainty, Upstart's loan origination volume grew by a staggering 89% year over year in the first quarter of 2025. Upstart's management is calling for the company to produce its first billion-dollar revenue year ever in 2025. Think about that -- not even during the extreme low-interest environment of 2021 did Upstart ever manage a billion dollars. There are other reasons for Upstart shareholders to be optimistic. The company's loan data shows that it does a more effective job of predicting loan defaults than the traditional FICO model. And after several years of losses, Upstart managed an adjusted EBITDA margin of 20% in the latest quarter and is virtually breakeven on a GAAP net income basis. 1 big reason to buy Upstart now To be clear, Upstart's personal loan vertical has been firing on all cylinders. But it's the two newer verticals -- auto loans and home loans, specifically home equity lines of credit (HELOCs) -- that are most exciting. The auto lending market is a massive one that is several times the size of the personal loan industry. And in the latest quarter, Upstart's auto originations were nearly five times what they were a year ago. Mortgages could be the really big opportunity here. Upstart's HELOC origination volume, which launched a little over a year ago, grew 52% sequentially in the first quarter. Combined, auto and home loans make up about 2% of the company's total loan originations today but could end up being the biggest driver of growth. One key statistic worth knowing is that U.S. homeowners are sitting on an all-time high $35 trillion in home equity, and many are just waiting for the opportunity to tap into it at lower rates. Trump's Tariffs Could Create $1.5 Trillion AI Gold Rush The Motley Fool's analysts are tracking a massive shift in U.S. tech. Over $1.5 trillion is already flowing into infrastructure, AI, and advanced manufacturing… and the number keeps climbing. Following a major tariff policy shift, a new AI Gold Rush is taking shape, and we think . It builds the tech infrastructure that Apple, OpenAI, and others suddenly can't live without. We just released a full write-up on this under-the-radar stock — and why now might be the exact moment to move. Continue » *Stock Advisor returns as of August 4, 2025 Matt Frankel has positions in Upstart and has the following options: short December 2025 $95 calls on Upstart. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy. 1 Reason to Buy Upstart (UPST) was originally published by The Motley Fool Sign in to access your portfolio
CNBC
2 hours ago
- CNBC
Santoli's Friday market wrap-up: Indexes stayed out of danger by hiding behind big brothers
(These are the market notes on today's action by Mike Santoli, CNBC's Senior Markets Commentator. See today's video update from Mike above.) The key indexes stayed out of danger by hiding behind their big brothers, the Nasdaq giants that embody both defense and aggression in this bull market. Apple 's jailbreak rally extended for a third day, the big Mag 7 laggard trying to make it up in a hurry, while carrying the Nasdaq-100 to a fresh high and offsetting another cluster of post-earnings selloffs in individual stocks (today it was Trade Desk , Microchip Tech and Block ). For the week, the NDX was up some 3.7%, almost three percentage points ahead of the equal-weight S & P 500 , enabling the standard-weight S & P 500 to hold within 1% of last week's intraday peak. Over the course of the week, acute concern over last Friday's poor employment report and broader apprehension toward the volatility-prone month of August was salved by increasing expectations of a September Fed rate cut, a glass-half-full take on new tariffs that emphasizes the room for exemptions and a broader sense that the brute force of the AI-buildout theme is too tough to fight. There is some sense that the mere anticipation of seasonal turbulence and concern over how far the four-month rally has travelled had investors a bit cautious entering the week, forestalling or even preventing any consequential pullback from taking hold. Much commentary about the extreme punishment handed out to stocks of companies missing forecasts or offering less-than-stellar outlooks. Shows how far prices ran relative to the fundamentals for the typical company. But the aggregate earnings growth (+11.8% vs a year ago, says FactSet), heavily influenced by the half-dozen largest tech bellwethers, keeps the chains moving for now. The S & P 500 is at levels first reached two weeks ago, in a healthy uptrend, with widely acknowledged likely support around 6150, both the old February peak and around the 50-day moving average – less than a 4% drop from here. Sometimes an overbought market can come back into balance with some sideways churn, allowing the overheated groups to cool and leaning on fewer big names to stay supported. This is the ideal scenario for bulls. Plausible, but not guaranteed.
