Posted 2/24/2024, 12:30:00 PM
Upstart AI Lending Star Falls 93% from Highs, But Could Rebound if Rates Recede
- 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 approves more loans at lower rates than traditional methods, but loan demand plunged in 2023 amid rising interest rates
- Revenue fell 38% and losses more than doubled for Upstart in 2023 due to economic conditions
- Upstart is forecasting a return to growth in 2024 if interest rates fall as expected
- The 93% plunge could present a buying opportunity given the long-term potential of Upstart's lending AI