Shares of Upstart Holdings Inc. (UPST) experienced a pullback on Monday afternoon, dropping by 5.2% to $34.36. This decline comes after a remarkable 43% surge in the stock’s price over the previous five trading days. The recent rally was fueled by the company’s strong second-quarter financial performance, which exceeded analyst expectations.
Upstart reported a quarterly loss of 17 cents per share, significantly better than the projected loss of 39 cents. Revenue for the quarter reached $128 million, surpassing estimates of $124.54 million. The company’s origination of 143,900 loans totaling $1.1 billion marked a 6% decrease from the previous year. However, Upstart achieved a notable improvement in its conversion rate, rising from 9% to 15%.
CEO Dave Girouard attributed the positive outlook to advancements in artificial intelligence (AI), a renewed funding supply, and operational efficiency improvements. Upstart anticipates revenue of around $150 million for the third quarter of 2024, surpassing the estimated $124.5 million.
Investors looking to gain exposure to Upstart can do so through various avenues. Besides purchasing shares directly through a brokerage platform, they can invest in exchange-traded funds (ETFs) that hold Upstart stock or allocate funds to strategies within their 401(k) plans that aim to acquire shares in mutual funds or other instruments. Upstart Holdings Inc. is categorized within the Financials sector, and many ETFs track this sector, providing investors with exposure to trends within this segment.
According to data from Benzinga Pro, UPST has a 52-week high of $49.62 and a 52-week low of $19.84.
