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Upstart Holdings Faces Credit Risks in Sports Betting Growth

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 12/15/2025, 11:33 am ET 12/15/2025, 11:33 am ET | 4 min 4 min read
Upstart Holdings Faces Credit Risks in Sports Betting Growth Thumbnail

Upstart Holdings Inc. stocks have been trading down by -4.26 percent amid potential competitive pressures impacting market confidence.

  • The growth of mobile sports betting creates fresh credit risks for Upstart Holdings as per BofA Securities, indicating potential vulnerabilities in the company’s financial ecosystem.

Candlestick Chart

Live Update At 11:32:55 EST: On Monday, December 15, 2025 Upstart Holdings Inc. stock [NASDAQ: UPST] is trending down by -4.26%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Upstart Holdings recently overshadowed market expectations with its earnings report, steering the focus to its impressive yet complex financial performance. Listing revenue approximately at $277M, its earnings per share sat at $0.33.

Despite a gross margin that’s hard to pin down due to missing data, operating margins tell a vivid story. An EBIT margin of -4.6% paints a picture of struggles not uncommon in dynamic markets.

Interestingly, the company’s total revenue reported a dip over three years but a snug increase when one considers a five-year window. This kind of erratic rise and fall suggest that predicting its future remains a tricky affair.

In terms of earnings analysis, as recorded, revenue per share stands encouragingly at $2.85. However, its pre-tax profit margin, devastatingly hitting -36.3%, indicates areas untouched by progressive achievements—an insight that probably worries investors and analysts alike.

Indebtedness and liquidity levels reveal some balancing acts. The debt-to-equity ratio sits at a precarious 2.5, with possible signs of leverage burdens considering the company’s long-term debt obligations. In some ways, the totality of Upstart’s current situation reflects its swimming upstream towards steadier profits and growth trajectories.

Navigating the Credit Risk Landscape

As new challenges arise within the sports betting sector’s financial ecosystem, there’s an alarming focus on Upstart’s exposure to mobile betting’s credit risk. This emerging frontier introduces nuances to a market previously navigated with fewer waves.

Bank of America Securities casts a cautious eye over these developments. A pointed observation towards the expected credit risks speaks volumes about potential spirals that can emerge. Analysts voice concerns over Upstart’s liability exposures that may become exacerbated by legalities, unforeseen events, or sudden regulatory changes.

Investors worry whether Upstart has bet high stakes on unpredictable outcomes. As much as sports betting blooms, the flip side presents a lesson in risk management not quite mastered yet by this otherwise agile company.

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Conclusion

Navigating a volatile and intricate landscape with dexterity, Upstart Holdings reflects both strategic business decisions and concerning risks that are imperative for traders to consider diligently. With insider sales sending subtle ripples, new terrains in mobile sports betting add dimensions previously unforeseen. As millionaire penny stock trader and teacher Tim Sykes, says, “It’s not about how much money you make; it’s about how much money you keep.”

Overall, Upstart’s journey weaves through exciting avenues enriched with opportunities and dead-ends. While it excels in niche corners of growth, cautious optimism is warranted as we proceed—with knowledge and anticipation, we peel through the unpredictable layers of credit risks and financial endeavors charted by this promising tech entity.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”