Upstart stocks tumble as online lending market forecasts disappoint
Holdings reached (UPST) reported higher than expected earnings and revenue for the September quarter. But advice from the online lending market disappointed investors as UPST stock fell on Wednesday.
Upstart released its third quarter results after the market closed on Tuesday. Profits for newcomers were 60 cents per share, up 253% from the previous year. This topped analysts’ estimates of 33 cents per share of profit for Upstart stock.
The company reported revenue of $ 228.5 million, up 250%. This exceeds estimates by $ 215 million.
“Upstart has raised its guidance again for the year with revenue now projected to $ 800 million from $ 750 million previously,” Bank of America analyst Nat Schindler said in a report to clients. “However, compared to previous quarters of big beats (the second quarter increased the full-year forecast by $ 150 million), the forward-looking guide was likely below some investor expectations.”
UPST Stock launched its IPO in December 2020
UPST stock fell nearly 16% to 263.58 in early trading on the stock market today. The company relies on artificial intelligence tools to assess personal and auto loan applications for banks.
Upstart launched an initial public offering in December 2020, with shares priced at 20. UPST share peaked at 401.49 on October 15. But the action Upstart soon after receiving signals to sell.
Upstart’s platform brings together consumers who want to take out a loan and directs them to banks using AI technology. Banks can also pay to add Upstart technology to their own websites or mobile apps, according to the BofA report.
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