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Upstart Holdings (UPST) stock has been among the struggling stocks given the vulnerable financial and economic situations worldwide. Since the AI based consumer lending company went public in 2020, the recent UPST stock price remained the lowest. Even lower than prices at the time of initial price offering (IPO).
UPST’s Journey Ahead
Yet for almost a week now, UPST stock price witnessed an upsurge. This is given the earnings release of the credit evaluation platform on November 8th. At the press time, UPST stock is trading at 21.64 USD with over 5% surge in a day.
After its results, stock prices constantly move higher and buyers follow “buying on dip”. Although, the bullish trend takes a pause just below the 50 day moving average and if buyers push asset price above this resistance zone then the rally price trend may complete its journey until the $30 level.
source- TradingView
Market conditions emerged from bearish trends that brought several flagship stocks at much discounted price. Upstart Holdings stock falls in one such category but analysts have different views over the same. Analysts from major firms widely suggest stock to “sell”.
At its peak, the stock price traded over 400 USD, but it tumbled and is currently trading after 95% fall.
Initial Phase did not Last Long for Upstart
Upstart Holdings has a significant goal to make improvements in the lending industry’s economics. The company believes given the shortcomings in the traditional risk models, the lending ecosystem made many people out of it.
The lending company provides loans to its consumers and evaluates the risk on the basis of the company’s own risk-based model. The home-grown model considers about 1,500 data points and executes them using its artificial intelligence (AI) program. Being an AI enabled platform acts in favor as it precisely assesses the default and fraud risk.
Despite the continued performance and fine results lately, the company has to face headwinds this year given multiple reasons.
Most prominent reason among all remains the Federal Reserve’s interest rate hike. Within the recent earnings release, the company management presented a weak outlook for the upcoming quarter. Moreover, the near term prospects also do not seem appealing.
Considering the current situation and potential future outlook, analysts suggest not to make a rush in buying UPST stock. Taking the benefit of doubt, it would be better to keep watch on the stock as possibility of improvement in economy might result as good omen for the stock price.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
