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Upstart (UPST 8.39%) recently reported its second-quarter results, and not only did it handily beat expectations on the top and bottom lines, but the fintech disruptor also issued upbeat guidance for the rest of 2025. So why did the stock fall after earnings?
The financial sector is dominated by big banks which mainly focus on generating stable profits instead of breakneck growth. However, a new generation of fintech companies -- which are modernizing traditional payment and banking services with their tech platforms -- are growing a lot faster than those aging industry leaders.
Shares of fintech lender Upstart (UPST 8.34%) rallied more than 8% to close the day on Friday.
Is your portfolio getting thinned out by all the profit-taking that tends to materialize when the market reaches record highs? That's OK.
To say that Upstart's (UPST 4.08%) recent growth is impressive would be a major understatement, especially considering that interest rates remain stubbornly high and it's not exactly an ideal environment for lending. However, Upstart's stock went down after earnings, despite better-than-expected growth, profitability, and guidance, so this begs questions about the health of the business.
Upstart (UPST -5.79%) went public on Dec. 16, 2020. The online lending marketplace priced its initial public offering (IPO) at $20, and its shares skyrocketed to a record high of $390 on Oct. 15, 2021.
Every industry eventually reaches a point where new technology sparks a long-term cycle of efficiency and productivity gains, marking a pivotal moment of transformation. One area in today's financial sector is on the verge of such a breakthrough, creating a significant opportunity for investors who recognize the shift.
SAN MATEO, Calif.--(BUSINESS WIRE)--Upstart CEO to Participate in Fireside Chat at the Goldman Sachs Communacopia and Technology Conference 2025.
The global financial services sector is an ocean of investment opportunity, worth over $33 trillion today, and expected to grow to over $44 trillion over the next few years.
Even though its stock fell after earnings, Upstart's (UPST 0.45%) business is doing incredibly well, even in a challenging environment for lending. The company's loan origination volume increased by an incredible 154% year over year, an acceleration over the prior quarter's already impressive growth rate.