Upstart

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

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The cloud-based AI lending platform had a robust quarter, but its guidance caused a run on the bank. Upstart Holdings (UPST -56.42%) stock was absolutely ...

It also marks the cheapest valuation in Upstart's history. Investors should keep in mind that Upstart is upending the traditional lending paradigm. Macro conditions aside, Upstart's opportunity is massive and disrupting the existing system was always going to take time. For the second quarter, management is forecasting revenue in a range of $295 million to $305 million, which would represent year-over-year growth of roughly 55% at the midpoint of its guidance. CEO Dave Girouard cited rising interest rates and the ongoing risks to the overall macro-economic picture as the reason for reining in the company's guidance. Additionally, the company handled more than 11,000 auto refi loans on its platform in the first quarter, nearly twice as many as it did in all of 2021.

The artificial-intelligence lending company slashes its full-year revenue outlook, noting the possibilities of a recession.

The company said revenue in its second quarter will be about $295 million to $305 million, below Wall Street forecasts of $335 million. Upstart (ticker: UPST) said it expects revenue in 2022 of about $1.25 billion, down from its previous forecast of $1.4 billion. Shares of Upstart were falling almost 60% Tuesday after the artificial-intelligence lending company slashed its full-year revenue outlook, noting the possibilities of a recession.

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.

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.

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.

Investing.com -- Stocks in focus in premarket trade on Tuesday, May 10th. Please refresh for updates. Novavax (NASDAQ:NVAX) stock fell 23% after the ...

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Check out the companies making headlines in midday trading. Peloton – Shares tumbled 12% after the equipment maker disclosed it's piling up excess inventory ...

Sunrun – The solar company's shares fell more than 8% after KeyBanc downgraded the stock to a sector weight rating from overweight. AMC Entertainment – The stock fell 6.7% after the movie theater operator posted a smaller-than-expected quarterly loss as well as revenue that exceeded analyst forecasts. Novavax – Shares fell 2% after the vaccine maker missed top and bottom line estimates for its latest quarter.

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.

Upstart Holdings (UPST) stock is plunging 57% in Tuesday premarket trading after the fintech cut its 2022 guidance and started holding some loans on its ...

pre-COVID, (ii) will funding sources temper their appetite, and (iii) did Upstart ( UPST) cut its outlook enough?" the macro environment has become an increasing headwind to growth this past quarter with both rising interest rates and rising consumer delinquencies putting downward pressure on conversion." "Key questions now are (i) will consumer credit worsen vs.

Jim Cramer says that when the facts change, investors need to change their strategies.

Hourican said March was a very robust month for restaurants and that trend continues into the second quarter. He explained that 90% of the loans originated on their platform are bought by banks and Upstart only holds loans to test new products. Rees explained that Crocs continues to make "a ton of money," including $600 million in profits last year. Hourican said customers love the six-day deliveries while employees love the new work-life balance options. Hey Dude will be a valuable asset for the future. Sysco has also made significant changes to how it does business. If you live by the sword, you need to die by the sword. But once the bubble burst, investors needed to quickly pivot from long-term winners, to lucrative short-term trades. Pfizer's sales and marketing machine will help remedy this problem. Cramer immediately called into question Upstart's business model, which was supposed to be a fintech loan platform. If you were selling stocks because interest rates on U.S. Treasuries were rising, then you have to sell those same stocks now that rates have reversed course. Back in the dot-com heyday, everyone was sure that Internet startups were here to stay.

Artificial intelligence (AI)-powered lending-platform Upstart (NASDAQ: UPST) tells a good story. When a consumer wants to borrow money from a bank or credit ...

Timothy Green has no position in any of the stocks mentioned. They just revealed what they believe are the ten best stocks for investors to buy right now... Upstart was supposed to be an AI-powered middleman, and now it's holding loans on its balance sheet. The map isn't the territory. When our award-winning analyst team has a stock tip, it can pay to listen. The company needs data to train its AI models, and different types of loans require different models. When you use any kind of model, AI-powered or not, you must understand the conditions under which that model is expected to provide a reasonable representation of reality. And by that, what I mean is when interest rates in the economy change quite quickly, I think it would be fair to say that our platform, its ability to react to the new market-clearing price, it's probably not as nimble as we would like. And even if the models hold up, how badly will Upstart's business be hit in a real recession? When a consumer wants to borrow money from a bank or credit union, the process of approving that loan can be time-consuming and complicated. Upstart's revenue more than tripled in 2021, and the company generated impressive profit margins. Using its AI models, Upstart instantly approves around three-quarters of the loans it processes.