Latest news with #UpstartHoldings
Yahoo
4 days ago
- Business
- Yahoo
2 Artificial Intelligence (AI) Stocks (Besides Nvidia) to Buy Hand Over Fist for the Long Term
Nvidia has become one of the world's largest companies thanks to AI, but it isn't the only opportunity. and Upstart are AI software powerhouses with rapidly growing businesses and addressable markets. Shares of both are down sharply from their all-time highs, so this could be a great time to invest in them. 10 stocks we like better than › Nvidia supplies the best data center chips for artificial intelligence (AI) development, and with a market capitalization of $3.6 trillion, it's now one of the largest companies in the world. There is still room for its stock to move higher, but investors who already own it might be looking for other AI names with growth potential. (NYSE: AI) developed a portfolio of over 130 ready-made applications to help businesses accelerate their adoption of AI. Upstart Holdings (NASDAQ: UPST), on the other hand, created an AI-powered lending algorithm that helps banks assess the creditworthiness of potential borrowers far more effectively than traditional methods. Both companies have rapidly growing businesses and enormous addressable markets, so here's why it might be a great idea for investors to add and Upstart to their portfolios for the long term. Very few companies have the financial resources or the technical expertise to develop AI software from scratch, so they are turning to third-party vendors like to meet their needs. can deliver a custom AI application to a business customer in as little as three months from the initial project briefing, whether they operate in financial services, retail, manufacturing, oil and gas, or a host of other industries. also stepped into agentic AI recently. It developed a platform that allows businesses to create and deploy virtual assistants into their operations to analyze data, automate workflows, and even influence key decisions. The platform connects to over 200 third-party databases and software applications so businesses can tap into their most valuable data to extract the most out of their AI agents. Salesforce CEO Mark Benioff says the market for "digital labor" -- or agents -- could be as large as $12 trillion in the future, so might be on the cusp of the biggest financial opportunity in its history thanks to its agentic platform. Businesses can access products through leading cloud providers like Amazon Web Services, Microsoft Azure, and Alphabet's Google Cloud. They can scale software using the computing capacity on offer from those cloud providers, so they don't have to bear the enormous cost of maintaining their own infrastructure. is building some serious momentum right now. The company generated a record $389.1 million in revenue during its fiscal 2025 (which ended on April 30), representing an increase of 25% compared to the prior year. That growth rate accelerated for the second straight year. Shares of are down 85% from their record high, which was set during the tech frenzy in 2020. The stock was unquestionably overvalued back then with its price-to-sales (P/S) ratio soaring to around 80, but it has since come down to a more reasonable level of 7.8. In fact, that's a 19% discount to its three-year average of 9.7 (which excludes the expensive 2021 period), so the stock might actually be undervalued now: The combination of momentum, its sizable market opportunity in areas like agentic AI, and its valuation creates a compelling opportunity for investors. Upstart thinks traditional human-led methods for assessing the creditworthiness of potential borrowers are outdated, partly because they center around Fair Isaac's FICO credit scoring system, which only considers a handful of metrics like a person's outstanding debts and their repayment history. The company's AI algorithm analyzes over 2,500 data points for every applicant to gain a better understanding of their creditworthiness. In fact, it's currently so good that it approves twice as many loans at a much lower average interest rate compared to traditional assessment methods -- all while maintaining a comparable risk profile. Plus, 92% of Upstart's approvals are now fully automated, so applicants don't have to wait around for lengthy human assessment processes. Upstart earns a fee each time its platform originates a loan on behalf of its bank partners. The company specializes in unsecured personal loans, but it has a growing presence in car loans and home equity lines of credit (HELOCs). There is still plenty of room for expansion into other segments like business loans, industrial loans, and credit cards over the long term. CEO Dave Girouard says $25 trillion worth of loans are originated worldwide each year across all segments, creating $1 trillion in fee revenue. He thinks all credit assessment processes will be handled by AI within the next decade, so Upstart is in a great position to capitalize on the enormous opportunity ahead. During the first quarter of 2025 (ended March 31), Upstart generated $213 million in total revenue, which was a 67% increase from the year-ago period. It was the fastest growth rate in three years, spurred by $2.1 billion in total loan originations, which was an 89% year-over-year jump. According to Wall Street's consensus estimate (provided by Yahoo! Finance), Upstart's annual revenue could top $1 billion in 2025 for the first time in the company's history. Upstart stock is down 84% from its 2021 peak. Like it was heavily overvalued back then with its P/S ratio surging to almost 50, but it has since come down to a more sustainable level of 8. Given the company's lightning fast revenue growth right now, and the incredible future opportunity in AI-powered loan originations, I think Upstart stock could be a great long-term buy at the current price. Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Nvidia, Salesforce, and Upstart. The Motley Fool recommends and Fair Isaac and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 2 Artificial Intelligence (AI) Stocks (Besides Nvidia) to Buy Hand Over Fist for the Long Term was originally published by The Motley Fool
Yahoo
5 days ago
- Business
- Yahoo
Upstart Stock Appreciates 40% QTD: Should You Take the Bait?
Upstart Holdings, Inc. UPST has delivered a strong gain of 40.1% so far in the quarter, significantly outperforming the Zacks Financial – Miscellaneous Services industry's 18.7% appreciation. In contrast to peers, such as LendingClub LC and Enova International ENVA, UPST has clearly emerged as one of the standout Holdings stands out for its disruptive business model and strategic growth initiatives, despite tackling economic headwinds and rising competition. UPST is reinventing consumer lending using artificial investors may be wondering if they've missed the investment opportunity or if there's still time to take a position. Let's explore further to determine whether it's wise to consider taking or increasing positions in UPST or waiting for a better entry point. Image Source: Zacks Investment Research Upstart is redefining credit underwriting through the application of artificial intelligence. At the core of its value proposition is a proprietary AI-based model that replaces the traditional FICO score with a more nuanced and predictive system, incorporating factors like education, employment history, and financial behavior. In first-quarter 2025, 92% of loans on its platform were fully automated, demonstrating unmatched efficiency and borrower experience. The company's superior automation rate, when combined with rising conversion rates (up from 14% to 19% YoY), underlines the tangible benefit of its model expansion beyond personal loans into verticals like auto refinancing, HELOCs, and small-dollar loans is paying off. Auto loan originations jumped 42% sequentially, HELOCs rose 52%, and small-dollar loans nearly tripled year over year. This diversification enhances revenue streams while enabling Upstart to test and fine-tune its AI model across product categories. Partnerships like the one with All In Credit Union also show Upstart's growing appeal among traditional lenders looking to reach more borrowers its focus on super-prime borrowers — now 32% of originations — reduces credit risk while increasing access to low-cost funding. Its marketplace model has diversified funding across banks, credit unions, and private credit providers, now with more than 50% of volume backed by committed AI innovation is a sustainable moat. Upstart integrated embeddings into its underwriting system — an advanced machine-learning method that transforms complex, unstructured data into actionable insights, enhancing the precision of credit evaluations. These embeddings enable the model to detect nuanced behavioral patterns among borrowers — for instance, recognizing relationships between different credit card types — thereby improving its ability to generalize and separate risk ahead, Upstart intends to debut its first machine-learning model for loan servicing, focused on boosting operational efficiency and lowering default rates, with the broader ambition of developing a distinctive, standalone servicing solution. However, challenges remain — elevated interest rates and a dip in contribution margins are notable. The growing super-prime borrower mix, while improving credit quality, also results in lower take rates due to intense competition. Moreover, margins in newer products like HELOC and auto lending are expected to mature over time, with initial take rates being modest due to early-stage scaling. Moreover, macroeconomic uncertainty and trade tensions add to the company's woes. The recent estimate revision trends do not provide a clear direction either. While the full-year 2025 consensus mark for EPS has been revised slightly downward over the past week, the same for 2026 has been adjusted above the prior projections. Image Source: Zacks Investment Research From a valuation perspective, we note that Upstart shares are currently overvalued, as suggested by the Value Score of terms of forward 12-month Price/Sales (P/S), Upstart is currently trading at 5.24X, which is at a premium to the industry average of 3.85X. Moreover, compared with major fintech rivals, the stock trades at a premium to LendingClub and Enova International. At present, LendingClub and Enova International have P/S multiples of 1.38X and 0.8X, respectively. Image Source: Zacks Investment Research While short-term macro risks remain, Upstart's differentiated technology, expanding loan mix, and improving profitability make it a compelling long-term fintech play. Investors seeking AI-driven disruption in consumer finance may find Upstart well worth the ride. However, it's also trading at a relatively high valuation. For now, holding the stock seems like the right move, especially if you have a longer investment horizon. Currently, Upstart Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report LendingClub Corporation (LC) : Free Stock Analysis Report Enova International, Inc. (ENVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
23-06-2025
- Business
- Business Insider
Analysts Are Neutral on Top Financial Stocks: Upstart Holdings (UPST), Janus Henderson Group (JHG)
Analysts fell to the sidelines weighing in on Upstart Holdings (UPST – Research Report) and Janus Henderson Group (JHG – Research Report) with neutral ratings, indicating that the experts are neither bullish nor bearish on the stocks. Confident Investing Starts Here: Upstart Holdings (UPST) Bank of America Securities analyst Mihir Bhatia maintained a Hold rating on Upstart Holdings today and set a price target of $59.00. The company's shares closed last Friday at $58.01. According to Bhatia is a 4-star analyst with an average return of 9.0% and a 61.9% success rate. Bhatia covers the Financial sector, focusing on stocks such as Bread Financial Holdings, Capital One Financial, and Synchrony Financial. Upstart Holdings has an analyst consensus of Moderate Buy, with a price target consensus of $64.00, representing a 6.8% upside. In a report issued on June 11, Stephens also initiated coverage with a Hold rating on the stock with a $55.00 price target. Janus Henderson Group (JHG) Wells Fargo analyst Michael Brown maintained a Hold rating on Janus Henderson Group on June 20 and set a price target of $37.00. The company's shares closed last Friday at $36.72. According to Brown is a 5-star analyst with an average return of 12.5% and a 67.7% success rate. Brown covers the Financial sector, focusing on stocks such as Apollo Global Management, Raymond James Financial, and Bridge Investment Group. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Janus Henderson Group with a $39.67 average price target.
Yahoo
22-06-2025
- Business
- Yahoo
Upstart Holdings (NasdaqGS:UPST) Shares Surge 28% Over Last Month
Upstart Holdings recently announced a partnership with All In Credit Union to expand personal loan access, potentially influencing its share price movement. The company's stock rose by 28% over the past month, which stands out given the broader market was flat in the last week. This alignment with Upstart's strategies to broaden its reach and enhance service offerings might have added positive momentum to its stock performance, counterbalancing the overall market trends. The partnership emphasizes Upstart's proactive steps in leveraging its platform to offer customized loan solutions, enhancing its position within the financial technology sector. We've spotted 2 warning signs for Upstart Holdings you should be aware of. AI is about to change healthcare. These 22 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Upstart Holdings' recent partnership with All In Credit Union is positioned to enhance its loan portfolio by expanding personal loan access. This development aligns with Upstart's enhancements in underwriting and automation, potentially improving loan approval rates and reducing default risks. Such improvements could positively impact both revenue and earnings forecasts by increasing origination volumes and enhancing net margins. Analysts expect Upstart's revenue to grow significantly, reflecting these changes. Although Upstart's stock has risen 28% in the past month, it's important to note that the total shareholder return over the last year, including dividends, was a substantial 168.07%. Over the past year, Upstart's performance outpaced both the broader US market and the US Consumer Finance industry, which returned 10% and 30.5% respectively. The company's share price movement towards the consensus price target of US$56.63 indicates a slight discount of approximately 2.39%. This shows potential for further price adjustments if revenue and earnings forecasts are met. Still, the stock remains expensive based on its Price-To-Sales Ratio compared to industry averages. The ongoing developments will be crucial for future profitability and may influence investor confidence, supporting Upstart's positioning within the financial technology sector. Jump into the full analysis health report here for a deeper understanding of Upstart Holdings. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:UPST. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
19-06-2025
- Business
- Yahoo
Upstart (UPST) Rallies 10.64% on Steady Fed Rates
We recently published a list of These 10 Stocks Boast Double-Digit Gains Amid Boring Market. Upstart Holdings Inc. (NASDAQ:UPST) is one of the best-performing stocks on Thursday. Upstart Holdings grew its share prices by 10.64 percent on Wednesday to close at $59.08 apiece following the Federal Reserve's decision to keep interest rates steady, while keeping its forecast of two cuts for the year. The announcement bolstered investor sentiment among financial and lending companies, including Upstart Holdings Inc. (NASDAQ:UPST), on optimism over a strong demand from more expected rate cuts. Upstart Holdings, Inc. (NASDAQ:UPST) is an Artificial Intelligence-powered lending marketplace which offers services such as personal loans, automotive retail and refinance loans, home equity lines of credit, and small dollar 'relief' loans. It connects millions of consumers to more than 100 banks and credit unions that leverage its AI models and cloud applications. A close-up of a businesswoman using a laptop, being illuminated by the AI-enabled cloud interface sponsored by the company. Upstart Holdings, Inc. (NASDAQ:UPST) currently holds a 'hold' recommendation from Zacks Research amid clear operating leverage and its aggressive expansion into new credit categories with improving AI and funding structures. While we acknowledge the potential of UPST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
