Upstart Holdings Inc is a financial technology company that leverages artificial intelligence and advanced algorithms to improve the loan origination process
By utilizing a data-driven approach, the company enables lenders to make more informed credit decisions, ultimately facilitating faster and more accurate personal loans for consumers. Upstart's platform analyzes a wide variety of data points beyond traditional credit scores to assess risk, which helps expand access to credit for individuals who may be underserved by conventional lending practices. Additionally, Upstart partners with banks and credit unions, providing them with tools to enhance their lending operations while promoting financial inclusion.
Shares of aI-powered lending platform Upstart (NASDAQUPST)
jumped 7.5% in the afternoon session as markets experienced a boost after data from the Bureau of Labor Statistics revealed that inflation for the month of February 2025 came in better than expected. The CPI rose 0.2% from the previous month (vs estimates for a 0.3% increase), while headline inflation rose 2.8% year on year (vs estimates for a 2.9% y/y increase). The data revealed inflation continued to edge closer to the Fed's 2% target, but not quite there yet. The reaction wasn't anything wild, but the sentiment leaned positive. The Nasdaq led the way, climbing 1.4%, boosting some tech stocks.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Shares of aI-powered lending platform Upstart (NASDAQUPST)
fell 8.5% in the afternoon session after the Nasdaq dropped 1.3%, marking its fourth consecutive day of losses, as concerns over the tech sector continue to mount. The downturn appears to be most pronounced in stocks heavily exposed to the AI market, with traders growing uneasy about stretched valuations and potential slowdowns in AI-related spending.
Gold recovered fast, while oil sellers did not have to struggle very hard to overpower the buyers. Attention and flows will now shift from crypto into other assets, including equities.
