Upstart: Downward Spiral
- Upstart reported another weak quarter in Q4 2022, and in particular guided to collapsing loan origination demand in Q1 2023.
- The fintech doesn't appear any closer to solving the committed capital issues, though this could provide a stock boost on the next up cycle.
- Upstart Holdings stock is expensive compared to fintech lending peers despite reporting large losses.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
Just a couple of weeks back, Upstart Holdings, Inc. (NASDAQ:UPST) announced plans to lay off ~20% of their workforce in a sign of how weak 2023 had started off. The fintech continues to operate a flawed AI-driven lending platform very susceptible to cyclical lending practices. My investment thesis remains Bearish on UPST stock despite Upstart trading near the lows, though the stock could become a good trading vehicle as the Fed moves to pause rate hikes.
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