Upstart stock price forecast after crashing like a rock

Upstart’s (NASDAQ:UPST) stock price tumbled as investors focused on the company’s earnings and guidance. The shares fell more than 50% to around $36, which is below Monday’s close of $77. The current price is around 91% below the all-time high of $401. As a result, the company’s market capitalization grew to around $3.5 billion.

Low start-up income

Upstart Holdings is a fintech company that provides loans to individuals. It offers loans to help people pay off credit cards, consolidate debt, get married, get medical treatment, and refinance vehicles, among other things.

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Upstart does not offer loans directly from its resources. Instead, it partnered with other companies such as First Federal, Customers Bank, and First National Bank of Omaha, among others.

In a statement on Monday, Upstart said its lending operations reached more than $4.5 billion in the first quarter. It has also added over 500 dealerships and 57 banks and credit unions to its platform.

As a result, Upstart posted net revenue of $310 million in the quarter, or about 156% year-over-year. Revenue from royalties reached $314 million. Net interest income turned negative even as loans on its balance sheet saw a sustained decline in valuation.

Upstart processed about 465,000 loans if the number of new borrowers reached 350,000. Its balance sheet is still strong, with net cash standing at $1 billion. The CEO said:

“We see a clear path to building a business with over $10 billion in revenue in the years to come and we are maniacally focused on achieving that goal.”

Upstart’s stock price fell after the company issued a weak guidance. The company said its revenue would be between $295 million and $305 million. The midpoint of this revenue growth was around 55%. For the full year, the company expects revenue to reach $1.25 billion, a year-over-year growth of 47%.

Upstart Stock Price Prediction

The daily chart shows that Upstart’s stock price has been on a strong downward trend over the past few months. The stock closed the day at $75.71, which was an important support level. The stock will open at $36.57, which was the lowest level since November 2020. Along the way, it has fallen below all moving averages.

Therefore, it is possible that the UPST stock price will continue to decline as the bears attempt to break below the support at $30.

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Karen J. Nelson