The Company

Went
2022-05-10

The company, which uses artificial intelligence in lending decisions, now expects 2022 revenue of roughly $1.25 billion. Its prior forecast was for about $1.4 billion in revenue.

The rise in consumer interest rates means that "on the margin, a whole bunch of people that would have been approved are no longer approved," Chief Executive Dave Girouard said on Upstart's earnings call.

"So there's a whole bunch of loans that just never happened at all, and there's a bunch of people that are still approved, but the interest rate is a few percentage points higher, and a certain fraction of them are going to decide that's not the product that they want," he said, especially citing the case of discretionary purchases.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • BellaFaraday
    2022-05-10
    BellaFaraday
    I feel like ai can be used for everything these days.
  • Joker_Smile
    2022-05-10
    Joker_Smile
    dropping now. is it a good time to catch falling knives?
  • Maria_yy
    2022-05-10
    Maria_yy
    Which company are you referring to?
  • ElvisMarner
    2022-05-10
    ElvisMarner
    Rising interest rates are bad for some people.
  • Dionysius
    2022-05-10
    Dionysius
    not the time to buy yet.
  • Huat8Huat
    2022-05-10
    Huat8Huat
    [Cool]
Leave a comment