Upstart

Upstart shocked investors with a hugely disappointing Q2 & FY22 guidance. It was a massive markdown from its earlier guidance. See more on UPST stock here.

Come and join our community of investors as we navigate the ups and down of the market together. Disclosure: I/we have a beneficial long position in the shares of UPST either through stock ownership, options, or other derivatives. We own our best ideas and have skin in the game. If not for the disastrous guidance, it could have the potential to reverse its decline. Our best research ideas in the service are highly actionable. In addition, there was also no mention of how it deployed its $400M stock repurchase authorization despite the recent battering in UPST stock. Nevertheless, we are cautiously optimistic that UPST stock could consolidate along the new levels. We also noted that the market has been pricing in a weak Q1 card, as it expects management to disappoint. Management was blindsided by its growth trajectory and underestimated the headwinds from the funding and rate hikes. But, we knew the market would inevitably turn its focus on Upstart's Q2 and FY22 guidance as a yardstick. Overall, it was a terrible guide, as the revisions were significant. As a result, its adjusted net margins came in at 18.9%, also above the consensus estimates of 16.7%. Therefore, if we didn't reflect Q2's forward metrics, it was another remarkably well-executed quarter by Upstart.

Upstart Holdings Inc (NASDAQ: UPST) reported better-than-expected first-quarter results on Monday after the bell. However, shares of the AI consumer lending ...

The analyst stated Upstart Holdings is currently in “investment mode” and has multiple product launches. This breaks the thesis for us of a marketplace lender, which is supposed to originate on behalf of funding partners,” Caintic wrote in his downgrade note. He added that Upstart Holdings faces a slew of headwinds, including rising loan prices, higher risk exposure due to a larger loan balance, weakness in the asset-backed security market and margin pressure.

Shares of Upstart Holdings plunged nearly 60% on Tuesday after the AI-driven lending platform cut its full-year revenue forecast, anticipating falling ...

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Shares of Upstart Holdings Inc. are on track to lose more than half their value in Tuesday's session after the lending company reduced its full-year ...

Caintic said he now has a “full-lender” multiple on the stock of 10 times estimated 2023 earnings per share. “If UPST will use its balance sheet to support its transaction volume, then we will ascribe a balance-sheet multiple,” he continued. “While UPST continues to have a fee-based revenue model, the larger loan balance does increase its risk exposure.” “This breaks the thesis for us of a marketplace lender, which is supposed to originate on behalf of funding partners.” “Our thesis going into 1Q’22 results recognized that consumer credit has been normalizing,” Citi Research analyst Peter Christiansen wrote in a note to clients. “Yet our expectation was that loan performance on recent issuance was somewhat expected, calibrated for, and perhaps performance benchmarks had been overly trend-fitted vs.

Upstart Holdings shares cratered over 50% Tuesday after the fintech company cut its yearly revenue outlook. The consumer lender flagged inflation pressures ...

Inflation in March soared to a 41-year high of 8.5%, and the Fed is expected to push its key rate to at least 2.75% by the end of 2022. Adjusted earnings also more than doubled to $0.61 a share, higher than Wall Street's view of $0.53 a share. The Federal Reserve since March has raised its benchmark interest rates by 75 basis points from the ultra-low range of 0% to 0.25% in a bid to tamp down on inflation. And there's a bunch of people that are still approved, but the interest rate is a few percentage points higher, and a certain fraction of them are going to decide that's not the product that they want. "The combination of inflation and monetary tightening imply the non-trivial risk of a recession potentially later this year. The shares tumbled 57% to $32.95 in premarket action, hitting prices not seen since December 2020 when the company's shares began trading.

Shares of Upstart (NASDAQ:UPST) plummeted Tuesday after the artificial intelligence lending platform cut its full-year revenue outlook, citing rising ...

"In addition to increasing rates for approved borrowers, this also has the effect of lowering approval rates for applicants on the margin," said CEO David Girouard on the earnings call. Upstart management indicated further economic challenges ahead as the Federal Reserve continues to hike rates and cut its balance sheet to tamp down on persistent inflation. "Given the general macro uncertainties and the emerging prospect of a recession later this year, we have deemed it prudent to reflect a higher degree of conservatism in our forward expectations,”" said CFO Sanjay Datta on Upstart’s earnings call Monday.

Shares of Upstart had fallen close to 60% after the company reported recent earnings results. Is this a buying opportunity?

Upstart runs a marketplace model, so it doesn't want to hold any loans on its balance sheet that it doesn't have to. Another huge red flag in the first-quarter report was the fact that Upstart significantly increased the number of loans it was holding on its balance sheet from about $252 million at the end of the fourth quarter to close to $600 million at the end of the first quarter. In addition, loans that may have qualified for a certain investor's risk appetite based on their specific risk criteria may no longer qualify. Upstart has already seen default rates normalize, which management attributes to the fading benefit of government stimulus. Well, Upstart, which uses technology and artificial intelligence to better assess the credit quality of borrowers for financial institutions and other investors, is no longer expecting the same kind of loan transaction volume it did a few months ago. Furthermore, Upstart originates loans to a range of borrowers across the credit spectrum, making a certain portion of its borrowers extremely risky.

Shares of Upstart plummeted Tuesday after the consumer lending platform cut its full-year revenue outlook.

"We expect there could be further downside based on the speed and intensity of a recession." Plus, the company noted borrower defaults are normalizing. The company, which uses artificial intelligence to gauge creditworthiness, said climbing interest rates are hurting loan volume. Shares of Upstart plummeted Tuesday after the artificial intelligence lending platform cut its full-year revenue outlook, citing rising interest rates and an uncertain economy. - Upstart, which uses artificial intelligence to gauge creditworthiness, cited climbing interest rates and the risk of a recession. - Shares of Upstart plummeted Tuesday after the AI consumer lending platform cut its full-year revenue outlook.

Upstart Holdings ( UPST) plunged to the downside Tuesday as traders and investors reacted to their earnings numbers late Monday. Prices gapped lower to make ...

In this weekly Japanese candlestick chart of UPST, below, we don't have the current price action plotted (a short-coming of this website) but the picture is still bearish. The software is giving us a very bearish price target. The weak On-Balance-Volume (OBV) line tells us that sellers are more aggressive with heavier trading volume on days when UPST has closed lower.

By Medha Singh and Anisha Sircar (Reuters) - Shares of Upstart Holdings tanked 60% on Tuesday after the artificial intelligence-driven lending platfor...

(Reporting by Medha Singh and Anisha Sircar in Bengaluru; Editing by Devika Syamnath) Affirm is slated to report third-quarter results on Thursday. By Medha Singh and Anisha Sircar

By Medha Singh and Anisha Sircar. (Reuters) -Shares of Upstart Holdings plunged nearly 60% on Tuesday after the AI-driven lending platform cut its full-year ...

By clicking submit, you are agreeing to our Terms and Conditions & Privacy Policy. PayPal Holdings Inc and Block Inc, which have pushed into BNPL, slipped 1.3% and 2.1%, respectively. Affirm is slated to report third-quarter results on Thursday. Stay informed daily on the latest news and advice on COVID-19 from the editors at U.S. News & World Report. Sign up to receive the latest updates from U.S News & World Report and our trusted partners and sponsors. The fintech company's stock was on track to erase most of its gains since going public in December 2020, the latest pandemic favorite to face the brunt of the end of loose monetary policy.

"All else being equal, I prefer [if] our stock was going up. But the fundamentals of our business has not changed," Upstart CEO told Cramer.

"All else being equal, I prefer [if] our stock was going up. "It's not a change in our model," Girouard said, referring to Upstart's use of its balance sheet to support research and development on new lending products. "More than 90% of our loans are originated and held by banks or originated by banks and sold forward to institutional markets. Upstart, which went public in December 2020, soared for much of last year and reached an all-time closing high of $390 per share on Oct. 15. Some analysts noted that increase raises Upstart's credit risk exposure, and Cramer told Girouard he was "shocked" by the figure. Shares of the artificial intelligence lending platform plunged 56.42% Tuesday, closing at $33.61 apiece, one day after it also lowered its full-year outlook for revenue and adjusted EBITDA margin.

Consumer lending provider Upstart Holdings reported its first-quarter results yesterday after the bell. In the wake of that particular set of data, ...

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Shares of Upstart (UPST -56.42%) plunged 56% on Tuesday after the artificial intelligence-powered lending platform slashed its full-year growth forecast.

During a conference call with analysts, Girouard warned that the Federal Reserve's plan to tame inflation by raising interest rates could dent Upstart's transaction volumes. Upstart's revenue soared 156% year over year to $310 million in the first quarter. Upstart cut its full-year revenue forecast from approximately $1.4 billion to roughly $1.25 billion.