Chime provides fee-free banking services for underserved customers. Upstart's AI lending platform helps its partners reach more borrowers.

Recently, Zacks.com users have been paying close attention to Upstart (UPST). This makes it worthwhile to examine what the stock has in store.

Artificial intelligence (AI) will reshape industries for decades, making early positioning in focused AI players critical. Smaller AI companies often offer more upside than megacaps that have already priced in the boom.

Edgestream Partners L.P. cut its position in shares of Upstart Holdings, Inc. (NASDAQ: UPST) by 23.8% in the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 56,459 shares of the company's stock after selling 17,618 shares during the quarter.

Upstart is rated a BUY due to strong execution, AI-driven loan automation, and compelling forward valuation multiples after a significant share price decline. UPST's Q3 saw 80% YoY transaction volume growth, 128% increase in loans approved, and positive operating income, highlighting robust operating leverage and profitability momentum. The company has secured long-term funding agreements, including a $1.5B deal with Castlelake which stabilizes Upstart's business and supports continued growth despite potential macroeconomic headwinds.

Initiate coverage on Upstart Holdings, with a hold rating. Q3 showed Upstart's model can scale profitably, but macro and credit headlines can quickly cap loan originations and pressure guidance. Q3 delivered strong growth (originations $2.9B, +80% YoY; revenue $277.0M, +71% YoY), yet still missed Street revenue and originations expectations. Macroeconomic stress, tightening lending models, and recent private credit bankruptcies (especially in auto loans) raise concerns about sustaining growth and guidance.

Upstart developed an artificial intelligence (AI)-powered algorithm that analyzes over 2,500 data points to determine the creditworthiness of potential borrowers. Upstart stock is down 35% this year amid concerns about the financial health of consumers, despite the company's surging revenue.

It's unclear where the market goes from here, but investors should take advantage of bargains while they're available. Figma has been on a roller coaster since going public, but it's making the right moves to drive long-term growth.

Recently, Zacks.com users have been paying close attention to Upstart (UPST). This makes it worthwhile to examine what the stock has in store.

Pagaya's capital-light model, expanding AI lending reach and stronger valuation set the stage for a compelling long-term growth outlook.