Latest news with #UpstartHoldings
Business Wire
6 days ago
- Business
- Business Wire
Upstart CFO to Participate in Fireside Chat at the Morgan Stanley US Financials Conference
SAN MATEO, Calif.--(BUSINESS WIRE)--Upstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, today announced that Sanjay Datta, Chief Financial Officer, will participate in a fireside chat at the Morgan Stanley US Financials Conference on Tuesday, June 10 at 3:15pm ET (12:15pm PT). A live audio webcast of the event will be available on Upstart's investor relations website at A replay of the webcast will be available for a limited period of time following the event. About Upstart Upstart (NASDAQ: UPST) is the leading AI lending marketplace, connecting millions of consumers to more than 100 banks and credit unions that leverage Upstart's AI models and cloud applications to deliver superior credit products. With Upstart AI, lenders can approve more borrowers at lower rates while delivering the exceptional digital-first experience customers demand. More than 90% of loans are fully automated, with no human intervention by Upstart. Founded in 2012, Upstart's platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar 'relief' loans. Upstart is based in San Mateo, California.
Yahoo
6 days ago
- Business
- Yahoo
1 Amazing Artificial Intelligence (AI) Stock Down 88% You'll Wish You'd Bought on the Dip in 2025
Upstart developed a unique artificial intelligence (AI) algorithm that could make traditional loan assessment methods obsolete. Upstart CEO Dave Girouard thinks the world's $25 trillion in annual loan originations could be assessed entirely by AI within the next decade. Upstart is leading that revolution, and its stock looks very attractive at the current price. 10 stocks we like better than Upstart › Upstart Holdings (NASDAQ: UPST) developed an artificial intelligence (AI) algorithm to originate loans on behalf of banks and financial institutions, and it appears to be far more effective at determining the creditworthiness of potential borrowers than traditional assessment methods. Upstart stock has nearly doubled over the past year, but it remains 88% below its all-time high, which was set during the tech frenzy in 2021. Demand for loans plummeted when interest rates soared in 2022 and 2023, which dealt a blow to the company's financial performance. But earlier this month, Upstart reported its financial results for the first quarter of 2025 (ended March 31), and they revealed extremely strong -- and accelerating -- revenue growth. Its stock is starting to look like a bargain, so here's why investors might wish they had bought the dip when they look back on this moment in the future. Fair Isaac's FICO credit scoring system has been central to the banking industry's assessment methods for over three decades. It uses five key metrics to determine a potential borrower's creditworthiness, including their existing debts and their repayment history, but Upstart thinks it's outdated. AI makes it possible to analyze high volumes of data in a matter of seconds, enabling Upstart's algorithm to consider over 2,500 metrics on every applicant. As a result, the company says it produces a more accurate overview of a borrower's ability to repay their loan. It approves double the number of applications than traditional assessment methods, and at a much lower average interest rate, while maintaining the same risk profile. Inside a traditional bank, it would take a human assessor days, if not weeks, to manually analyze as much data as Upstart's AI algorithm. The company is slowly phasing humans out of the process entirely -- during the first quarter of 2025, it originated 240,706 loans in total, and a staggering 92% of those approvals were fully automated thanks to AI. The bulk of Upstart's originations are unsecured personal loans, but it has a growing presence in automotive loans and also in the home equity line of credit (HELOC) segment. At the company's "AI Day 2025" earlier this month, CEO Dave Girouard hinted at a potential expansion into small business loans, industrial loans, and credit cards over the long term. Girouard said there are around $25 trillion worth of originations worldwide each year across all loan segments, which translates into a $1 trillion opportunity in terms of fee revenue. He believes all human assessment methods will be replaced by AI within the next decade, and since Upstart is leading the transformation, it could capture a sizable chunk of that value. Upstart generated $213 million in total revenue during the first quarter of 2025. It was a 67% increase from the same quarter in 2024, marking the fastest growth rate in around three years. It was also the third consecutive quarter in which that growth rate accelerated, highlighting the significant momentum in loan demand. As I mentioned earlier, Upstart originated 240,706 loans during the quarter. They had a face value of $2.1 billion, which was a whopping 89% jump compared to the value of the loans the company originated in the same quarter last year. That growth rate also accelerated for the third straight quarter. Upstart also made significant progress at the bottom line because its operating expenses only increased by 11.6%, which was a much slower pace than the increase in its revenue. The company still lost $2.4 million on a generally accepted accounting principles (GAAP) basis, but that was a 96.2% reduction from the $64.6 million net loss it delivered in the year-ago quarter. Upstart's preferred measure of profitability is adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), which is a non-GAAP metric. It excludes one-off and non-cash expenses like stock-based compensation, so it's a good indicator of the actual cash the business is generating. It was positive to the tune of $42.5 million during the quarter, which was a big swing from the loss of $20.3 million from the year-ago period. When Upstart stock peaked in 2021, its price-to-sales (P/S) ratio surged to around 50, which was a completely unsustainable valuation. But the 88% decline in the stock since then, combined with the company's rapid revenue growth, has pushed its P/S ratio down to 5.7. That's a 35% discount to its long-term average of 8.8 dating back to when Upstart went public in 2020. Plus, management's guidance suggests the company will deliver a record $1.01 billion in revenue during the 2025 full year, which places the stock at a forward P/S ratio of 4.2: In other words, Upstart stock would have to double by the end of this year just to trade in line with its long-term average P/S ratio of 8.8. Considering the company's accelerating revenue growth, I think that's a real possibility. The decline in interest rates at the end of 2024 was a big tailwind for Upstart's business in the first quarter of 2025. Wall Street is anticipating two more cuts from the Federal Reserve this year (according to the CME Group's FedWatch tool), which should drive even more demand for loans. But the opposite is also true -- if the Fed cuts rates slower than expected, Upstart's recent momentum could temporarily hit a wall. But investors should stay focused on the long-term opportunity at hand, because if the number of loans assessed by AI continues to grow as CEO Dave Girouard expects, then Upstart stock could be poised for substantial upside over the next decade. Before you buy stock in Upstart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Upstart wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Upstart. The Motley Fool recommends CME Group and Fair Isaac. The Motley Fool has a disclosure policy. 1 Amazing Artificial Intelligence (AI) Stock Down 88% You'll Wish You'd Bought on the Dip in 2025 was originally published by The Motley Fool 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
29-05-2025
- Business
- Yahoo
Upstart Holdings' (UPST) Strong Earnings Report Made Maple Tree Capital to Increase Its Holdings
Maple Tree Capital, an investment management company, released its Q1 2025 investor letter. A copy of the letter can be downloaded here. Q1 2025 saw a strong start but turned sour due to tariff concerns and macroeconomic fears, leading to a sharp market pullback, with the Nasdaq falling nearly 22% from its highs and the S&P 500 down 20%. Despite the challenges, the firm made significant progress this quarter by averaging in the top-conviction stocks, utilizing covered calls, and exercising patience. Maple's growth-oriented fund, Jonagold, has become a standout performer, greatly surpassing all major benchmarks since its launch in 2023. While Heartwood is still facing difficulties. Maple Tree Capital's Jonagold returned -13.64% in Q1 compared to the Nasdaq's -10.26% return and the Russel 2000's -9.48% return. Maple Tree Capital's Heartwood returned -18.04% in Q1 vs. the S&P 500's -4.27% and the Dow Jones' -0.87% return. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Maple Tree Capital highlighted stocks such as Upstart Holdings, Inc. (NASDAQ:UPST). Upstart Holdings, Inc. (NASDAQ:UPST) is a US-based artificial intelligence (AI) lending platform. The one-month return of Upstart Holdings, Inc. (NASDAQ:UPST) was -1.65%, and its shares have appreciated by 93.62% over the past 52 weeks. On May 28, 2025, Upstart Holdings, Inc. (NASDAQ:UPST) closed at $47.01 per share, with a market capitalization of $4.535 billion. Maple Tree Capital stated the following regarding Upstart Holdings, Inc. (NASDAQ:UPST) in its Q1 2025 investor letter: "We significantly increased our investment in Upstart Holdings, Inc. (NASDAQ:UPST), our largest holding, this quarter, following an exceptionally strong Q4 earnings report. In fact, we boosted our position by 12.67%, a significant size increase considering it was already our biggest position. 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) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Upstart Holdings, Inc. (NASDAQ:UPST) at the end of the first quarter, which was 39 in the previous quarter. Upstart Holdings, Inc. (NASDAQ:UPST) reported revenue of $213 million in Q1 2025, up 67% year-on-year. While we acknowledge the potential of Upstart Holdings, Inc. (NASDAQ: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 timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Upstart Holdings, Inc. (NASDAQ:UPST) and shared billionaire David E. Shaw's small-cap stock picks with huge upside potential. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is 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
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
Business Wire
22-05-2025
- Business
- Business Wire
Upstart CTO and CFO to Participate in Fireside Chat at the BofA Securities 2025 Global Technology Conference
SAN MATEO, Calif.--(BUSINESS WIRE)--Upstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, today announced that Paul Gu, Co-founder and Chief Technology Officer, and Sanjay Datta, Chief Financial Officer, will participate in a fireside chat at the BofA Securities 2025 Global Technology Conference on Tuesday, June 3 at 10:40am PT (1:40pm ET). A live audio webcast of the event will be available on Upstart's investor relations website at A replay of the webcast will be available for a limited period of time following the event. About Upstart Upstart (NASDAQ: UPST) is the leading AI lending marketplace, connecting millions of consumers to more than 100 banks and credit unions that leverage Upstart's AI models and cloud applications to deliver superior credit products. With Upstart AI, lenders can approve more borrowers at lower rates while delivering the exceptional digital-first experience customers demand. More than 90% of loans are fully automated, with no human intervention by Upstart. Founded in 2012, Upstart's platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar 'relief' loans. Upstart is based in San Mateo, California.
