Latest news with #UPST
Yahoo
2 days ago
- Business
- Yahoo
Upstart Holdings, Inc. (UPST): A Bull Case Theory
We came across a bullish thesis on Upstart Holdings, Inc. (UPST) on Deep Value Retirns' Substack. In this article, we will summarize the bulls' thesis on UPST. Upstart Holdings, Inc. (UPST)'s share was trading at $47.17 as of 30th May. UPST's forward P/E was 28.90 according to Yahoo Finance. A data centre room with cloud technology, illustrating the enterprise application software services. Upstart (UPST) offers compelling upside potential if it can successfully navigate its current challenges and deliver on its growth ambitions. While the company is not yet producing clean free cash flow, management's target to achieve GAAP profitability by the second half of 2025 marks a significant step toward financial sustainability. Upstart's innovative platform and market position give it strong growth prospects, and if it can convert this growth into consistent free cash flow—targeting at least $25 million quarterly—it would validate the long-term investment thesis. Addressing the $700 million net debt and potential equity raise will be critical, but successful deleveraging would strengthen the balance sheet and reduce investor concerns. Achieving these milestones could lead to a substantial re-rating of the stock, with the current $100 per share price target representing a conservative estimate of its upside by mid-2026. For investors who believe in Upstart's technology and market opportunity, the company's path to profitability and improved cash flow generation offers an attractive risk/reward profile, positioning it well to capitalize on its growth potential and reward patient shareholders as it scales sustainably. Previously, we have covered Upstart Holdings, Inc. (UPST) in March 2025 wherein we summarized a by Unconventional Value on Substack. The author highlighted the company's AI-powered lending platform's improved risk models and strong 2024 growth, positioning the company for a recovery and continued expansion if economic conditions improve. Upstart Holdings, Inc. (UPST) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held UPST at the end of the first quarter which was 39 in the previous quarter. While we acknowledge the potential of UPST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
1 Volatile Stock with Solid Fundamentals and 2 to Steer Clear Of
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors. These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here is one volatile stock that could deliver huge gains and two that might not be worth the risk. Rolling One-Year Beta: 3.94 Founded by the former head of Google's enterprise business, Upstart (NASDAQ:UPST) is an AI-powered lending platform facilitating loans for banks and consumers. Why Does UPST Fall Short? Sales tumbled by 11.4% annually over the last three years, showing industry trends like AI are working against its favor Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue High net-debt-to-EBITDA ratio of 8× increases the risk of forced asset sales or dilutive financing if operational performance weakens Upstart's stock price of $51.30 implies a valuation ratio of 4.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than UPST. Rolling One-Year Beta: 1.36 Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention, and compliance. Why Are We Wary of CVLT? Sales trends were unexciting over the last three years as its 9% annual growth was well below the typical software company Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 1.6 percentage points Commvault Systems is trading at $186.99 per share, or 7.5x forward price-to-sales. Check out our free in-depth research report to learn more about why CVLT doesn't pass our bar. Rolling One-Year Beta: 1.11 Founded in 2009, Integral Ad Science (NASDAQ:IAS) provides digital advertising verification and optimization solutions, ensuring that ads are viewable by real people in brand-safe environments across various platforms and devices. Why Do We Like IAS? Software platform has product-market fit given the rapid recovery of its customer acquisition costs Operating margin improvement of 11.3 percentage points over the last year demonstrates its ability to scale efficiently Robust free cash flow margin of 22.1% gives it many options for capital deployment At $8.24 per share, Integral Ad Science trades at 2.3x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
Upstart Stock Tanks 32% in 3 Months: Time to Hold or Book Loss?
Upstart Holdings, Inc. UPST has seen a sharp 32.1% drop in the past three months, far underperforming the broader Zacks Financial - Miscellaneous Services industry, which slipped just 5.2%. Compared to peers like SoFi Technologies SOFI, LendingClub LC and Enova International ENVA, UPST stock has clearly been hit harder. Image Source: Zacks Investment Research The recent decline has left investors asking: Is this the time to cut losses, or does UPST still have long-term value? While the near-term picture is cloudy, Upstart Holdings' long-term growth story remains intact, making a strong case for holding the stock. Upstart Holdings' recent decline has more to do with broader market headwinds than company-specific challenges. A widespread tech sell-off, fueled by fears of a global economic slowdown and escalating trade tensions, has weighed heavily on high-growth stocks, including UPST. Many companies that had benefited from the AI-driven rally, like Upstart Holdings, are now going through a reset. Despite the recent plunge, the stock is trading at a premium compared with the industry average. UPST trades at a forward 12-month price/sales (P/S) multiple of 3.83X, slightly higher than the industry's 3.48X. Image Source: Zacks Investment Research Compared with major fintech rivals, the stock trades at a premium to LendingClub and Enova International while at a discount to SoFi Technologies. At present, LendingClub, Enova International and SoFi Technologies have P/S multiples of 1.15X, 0.7X and 4.13X, respectively. Shares of Upstart Holdings have plunged 53% from the 52-week high of $96.43 (reached on Feb. 13) amid this broader correction. With the recent decline, Upstart Holdings shares have been down 26.5% year to date (YTD) against a YTD gain of 36.7% at their February peak. Nonetheless, the recent decline looks more like a painful correction than a collapse. Long-term investors should view this decline as a temporary setback rather than a sign of fundamental weakness. Upstart Holdings' core value lies in its use of artificial intelligence (AI) to assess borrower creditworthiness. Unlike traditional lenders that rely heavily on FICO scores, UPST uses additional factors like education and employment history to make more informed decisions. In the first quarter of 2025, an impressive 92% of the loans processed through Upstart Holdings' platform were fully automated. This means fewer manual reviews, faster approvals and lower operating costs. These features are crucial in a competitive personal loan market. However, the story doesn't stop with personal loans. Upstart Holdings is also expanding into other verticals, including auto loans, home equity lines of credit (HELOC) and small-dollar emergency loans. These areas are showing momentum. In the last reported quarter, auto loan originations rose 42% quarter over quarter, HELOCs were up 52%, and small-dollar loans increased 5%. Improved AI models, better customer conversion and new features like real-time income verification are driving this growth by making borrowing simpler and faster. Upstart Holdings' biggest edge lies in its technology. The company's AI models are constantly evolving. Its latest model, Model 19, adds a new layer called the 'payment transition model', which tracks a borrower's movement between different stages of repayment, instead of just marking a loan as 'paid' or 'defaulted.' This lets Upstart Holdings make better predictions and fine-tune risk levels. Before that, Model 18 added APR (annual percentage rate) as a factor, making the system even more accurate. These changes are paying off. Upstart has improved its conversion rate from 14% a year ago to 19% in the latest quarter. Such improvement in a high-volume lending business is meaningful. This type of innovation is what gives UPST a chance to outperform traditional lenders in the long run. In the last reported quarter, Upstart Holdings' total revenues soared 67% year over year to $213 million, while the non-GAAP EPS of 30 cents demonstrated a strong improvement from the year-ago quarter's loss of 31 cents. The company's growth story seems to remain rosy. The Zacks Consensus Estimate for 2025 revenues indicates robust year-over-year growth of 59%. The consensus mark for EPS is pegged at $1.46, indicating a strong improvement from a loss of 20 cents in 2024. Upstart Holdings, Inc. price-consensus-eps-surprise-chart | Upstart Holdings, Inc. Quote Upstart is a rare fintech with strong technology, growing loan segments and a clear vision. However, it's also trading at a relatively high valuation, which makes it vulnerable to market swings. The recent drop doesn't change the core story. For now, holding the stock seems like the right move, especially if you have a longer investment horizon. Currently, Upstart Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LendingClub Corporation (LC) : Free Stock Analysis Report Enova International, Inc. (ENVA) : Free Stock Analysis Report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
Why Upstart Holdings (UPST) Stock Crashed Yesterday
We recently compiled a list of the Traders Flee These 10 Stocks Today. In this article, we are going to take a look at where Upstart Holdings, Inc. (NASDAQ:UPST) stands against other stocks that crashed yesterday. Wall Street's main indices ended mixed on Thursday as investors continued to digest a series of first-quarter earnings and key economic data. Among the three indices, only the Nasdaq registered losses, down 0.18 percent. In contrast, the Dow Jones grew by 0.65 percent while the S&P 500 rose by 0.41 percent. Meanwhile, 10 companies registered hefty losses during the session, battered by a flurry of negative news, missed estimates, and a weak outlook for the rest of the year. In this article, let us explore the 10 companies that lag in performance and identify the reasons behind their decline. To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume. A close-up of a businesswoman using a laptop, being illuminated by the AI-enabled cloud interface sponsored by the company. Upstart Holdings dropped its share prices by 7.66 percent on Thursday to finish at $47.39 apiece amid the lack of fresh developments from its recently organized AI Day. Upstart Holdings, Inc. (NASDAQ:UPST) hosted its first-ever AI Day investor event in New York City, where investors hungry for fresh catalysts expected more concrete plans to buoy shares in the company. Last week, Upstart Holdings, Inc. (NASDAQ:UPST) earned lower price targets from two investment firms, Needham and Piper Sandler, at $70 and $69, respectively. Meanwhile, JP Morgan reaffirmed its Neutral rating and gave the stock a price target of $79. During the first quarter of the year, Upstart Holdings, Inc.'s (NASDAQ:UPST) narrowed its net loss by 96 percent to $2.4 million from $64.6 million in the same period last year. Revenues expanded by 67.7 percent to $213 million from $127 million year-on-year. Overall, UPST ranks 8th on our list of stocks that traders flee today. While we acknowledge the potential of UPST as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UPST but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at .
Yahoo
09-05-2025
- Business
- Yahoo
Why Upstart Holdings, Inc. (UPST) Nosedived on Wednesday
We recently published an article titled . In this article, we are going to take a look at where Upstart Holdings, Inc. (NASDAQ:UPST) stands against the other stocks. The stock market bounced back from the previous day's losses, with all major indices finishing higher as investors cheered the central bank's decision to keep interest rates unchanged. On Wednesday afternoon, the Federal Reserve kept rates steady at a range of 4.25 percent to 4.5 percent, saying that it was not in a hurry to cut rates and could still 'wait and see' the impacts of President Donald Trump's tariff policies. The Dow Jones rallied by 0.70 percent, the S&P 500 increased by 0.43 percent, and the Nasdaq grew by 0.27 percent. Beyond the major indices, bucked a broader market optimism as investors sold off on a series of disappointing news. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. A close-up of a businesswoman using a laptop, being illuminated by the AI-enabled cloud interface sponsored by the company. Upstart Holdings, Inc. (NASDAQ:UPST) declined by 9.65 percent on Wednesday to end at $46.44 apiece as investors brushed off its strong earnings performance during the quarter after a number of investment companies reduced their price targets for its stock. On Wednesday, Needham & Company lowered its price target for Upstart Holdings, Inc.'s (NASDAQ:UPST) stock by a whopping 35 percent to $70 from $108 previously, while maintaining its 'buy' recommendation. The new price also marked a 50-percent upside from the company's closing price on Wednesday. Additionally, the company received a lower price target of $69 from Piper Sandler, or 34 percent lower than its previous price target of $105. The investment firm, however, maintained its 'overweight' rating on the stock. According to Piper Sandler, the overweight rating reflected its continued confidence in Upstart Holdings, Inc.'s (NASDAQ:UPST) despite the lower price target. During the first quarter of the year, Upstart Holdings, Inc.'s (NASDAQ:UPST) narrowed its net loss by 96 percent to $2.4 million from $64.6 million in the same period last year. Revenues expanded by 67.7 percent to $213 million from $127 million year-on-year. Overall UPST ranks 6th on our list of Wednesday's worst performers. While we acknowledge the potential of UPST as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UPST but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
