Upstart: Buy The Panic
Upstart's shares crashed over 27% after the FinTech reported declining revenues and a higher than expected loss in the third quarter.The decline in loan volumes was largely expected, however, due to high interest rates. Upstart has potential for a rebound as interest rates fall.Upstart's long-term value lies in its AI technology that can optimize the lending process and replace traditional credit analysis.Shares of Upstart are more attractively valued on the drop. monsitj Shares of Upstart crashed more than 27% after the AI start-up submitted its earnings card for the third quarter on November 7, 2023. The FinTech start-up generated another quarter of Y/Y revenue declines and saw expanding losses in a sector that continues to suffer broadly from high interest rates and a decline in loan originations. While the Q3'23 report was not great, the market's reaction appears exaggerated given that the start-up has guided for adjusted EBITDA breakeven in Q4'23 and no sequential top line decl