Upstart Soars 2,000% Post-IPO then Crashes 93% as Rates Rise, But AI Lending Tech Still Called Gamechanger
- Upstart Holdings stock surged over 2,000% after IPO in 2020 due to its AI lending technology, but has since lost 93% of its value
- Upstart's AI models assess loan applicants more thoroughly than traditional methods, approving more loans at lower rates
- Rising interest rates in 2022-2023 caused loan demand to plummet, leading to a 38% revenue drop and over $200M loss for Upstart
- Cost cutting efforts not enough to prevent stock price plunge; recovery expected as rates decline in 2024
- Despite volatility, Upstart's automated lending technology remains game-changing in a multi-trillion dollar industry