Upstart: Don't Get Too Much Excited
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Upstart Holdings has shown improved Q3 performance with a 43% increase in lending volume and positive adjusted EBITDA. However, concerns remain about its AI lending models' resilience in a recession and its high valuation compared to peers.
November 09, 2024 | 2:15 pm
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NEUTRAL IMPACT
Upstart Holdings reported a 43% increase in lending volume and positive adjusted EBITDA in Q3. However, its AI lending models are untested in a recession, and its high EV/revenue multiple suggests potential overvaluation.
While Upstart's Q3 results show strong growth, the company's AI models have not been tested in a recession, posing a risk. Additionally, its high EV/revenue multiple compared to peers suggests the stock may be overvalued, balancing the positive news with caution.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100