Upstart Holdings (NASDAQ:UPST) stock is on the rise Tuesday despite a lack of news from the recently-made-public company.
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Here’s everything potential investors need to know about Upstart Holdings and UPST stock.
- Upstart Holdings is a lending company created by former employees of Alphabet’s (NASDAQ:GOOGL,GOOG) Google.
- The company’s focus is on leveraging artificial intelligence (AI) to automate the lending process.
- It notes that 69% of loans taken out with it are fully automated.
- Upstart Holdings argues that its AI process allows it to seek out a wider range of borrowers that aren’t eligible for premium loans.
- It says that only 48% of Americans don’t have access to premium loans despite 80% of them having never defaulted on a credit product.
- With its AI determining loan eligibility, the company seeks to breathe new life into the lending market, which it says has grown stagnant.
- That would benefit the company with it tapping a customer base seeking out loans that may not be accepted by other lenders.
- At the same time, that could benefit more Americans looking to take out loans that have been rejected despite never defaulting.
- Upstart Holdings is still incredibly new to the public market.
- It only launched its initial public offering (IPO) on Dec. 15, 2020.
- While shares of UPST stock have only been on the public market for less than a month, they’ve soared during that time.
- This has seen shares of the stock rise roughly 64% since its IPO.
UPST stock was up 10% as of noon Tuesday.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
