When Growth Meet Headwind? Let's see UPST's plunge!
What happens when growth stocks encounter a weak macroeconomic cycle?
First of all, there will definitely be sharp rises and falls. $Upstart Holdings, Inc.(UPST)$ plummeted 23% after-hours on Tuesday as its Q3 revenue, earnings, and Q4 revenue guidance all fell short of expectations.
Even though UPST is associated with the concept of an "AI-driven platform," it has not been able to escape the suppression of the "high-interest rate environment."
The stock has dropped from its peak of $72 this year to $22 after-hours.
In terms of performance
Q3 revenue was $134.6 million, lower than the consensus of $139.7 million, and lower than Q2's $135.8 million and the previous year's $157.2 million.
EPS was -$0.05, lower than the consensus expectation of -$0.02, returning to a loss from Q2's $0.06.
Lending partners (banks) issued 114,464 loans through its platform, totaling $1.2 billion, a 34% decrease from the third quarter of 2022. Q4 revenue guidance is approximately $135 million, with a consensus expectation of $157.6 million.
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