Upstart Holdings, Inc. (NASDAQ: UPST) had a quiet IPO in mid-December. Its IPO was overshadowed, falling within a week of the highly anticipated IPOs for DoorDash, Inc. (NYSE: DASH) and Airbnb, Inc. (NASDAQ: ABNB).
But today, Upstart is finally getting its moment in the spotlight.
According to a recent press release, the company is “a leading artificial intelligence (AI) lending platform.” It hosted its first earnings call on Tuesday night, reporting profits of $0.07 per share, beating the analyst consensus of $0.05.
But past earnings aren’t what investors are focused on today. Instead, they’re eyeing the forward-looking guidance and growth potential as the company enters into the automotive lending industry.
According to the company’s press release, “approximately $1 trillion of cars are sold in the US, and most of them are financed. Yet… less than 1% of buyers satisfied with the current process.”
Upstart seeks to “create a seamless and inclusive experience” for customers and “reduce the cost of auto financing” with a new acquisition: Prodigy Software, Inc., a provider of cloud-based, automotive retail software.
In the release, Upstart claims that AI-enabled auto loans provide better service at a lower cost to all parties, stating the “lending model can provide banks with up to 75% fewer defaults at the same approval rate.”
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Those financing the cars aren’t left out. The company claims that the platform enabled “consumers to refinance expensive and mispriced auto loans, saving borrowers an average of $72 per month.”
UPST stock closed on Wednesday at $60.79. The price has more than doubled during Thursday’s trading session. At writing, it has traded as high at $122.99.
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