Upstart Holdings jumped Wednesday, with UPST stock briefly flashing an aggressive entry. The AI-powered lender is expected to resume revenue growth in the current third quarter and profitability next year.
Upstart is a lending platform using artificial intelligence to connect consumers with banks, focusing on personal loans, auto loans and home equity lines.
The company turned profitable in 2020 and soared in 2021, before plunging in 2022 and turning to losses last year. UPST stock, which came public in December 2020, skyrocketed to a record 401.49 in November 2021 but then plunged until May 2023.
Upstart Growth
Analysts see Upstart revenue rising 11% in the third quarter vs. a year earlier, improving from a 6% decline in Q2. Growth is expected to accelerate for the next three quarters. Losses should narrow for a few quarters, with analysts predicting a small profit for 2025.
Upstart Stock Action
Upstart stock rose 5.1% to 39.55 in Wednesday's stock market trading, bouncing from the 21-day moving average. Shares hit 41.70 in morning action, clearing a trendline and peeking above the Sept. 19 high of 41.49, briefly offering early entries.
UPST stock is 14.5% above its 50-day line, making any trade riskier.
Upstart is trading in an emerging consolidation starting in late August. Shares tested their 50-day line on Sept. 10, as auto lending giant Ally Financial warned of rising delinquencies and other weak trends. But credit card companies have reported relatively stable delinquency metrics since then.
The short consolidation could be viewed as a handle in a consolidation going back to last December or even August 2023. That would offer a 49.71 buy point.
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