Shares of Upstart were sinking Wednesday after the consumer lending company posted a wider-than-expected loss and issued a dismal outlook for growth.
Upstart uses artificial intelligence to allow lenders to approve more borrowers. In a conference call, the company reiterated the negative impact of banks being cautious about lending amid an environment of higher interest rates. In the third quarter, Upstart said lending partners originated 34% fewer loans than a year ago.
The stock fell as much as 30% shortly after the market opened, which would put it on pace for the largest percent decrease since August when it fell 34.24%, according to Dow Jones Market Data. At last check, the stock was down 25% to $22.07. After the earnings report, Jessurun stuck with his Buy rating on the stock but cut his target for price by half to $32. In a research note, he wrote that the next few quarters should show similar weakness but given the possibility of the Federal Reserve cutting rates next May “we believe that the macro environment should round the corner … and share price performance should likely follow.”
France Dernières Nouvelles, France Actualités
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