Upstart Holdings (UPST) Faces Investor Scrutiny Despite Strong Q3 Earnings
Upstart Holdings reported a Q3 EPS of $0.23, surpassing analyst expectations of $0.08. Yet, the stock declined as weak Q4 guidance overshadowed the results. CEO Dave Girouard admitted the company's AI risk model overreacted to macroeconomic signals, leading to fewer loan approvals.
Despite short-term turbulence, Upstart's AI-driven lending platform remains a long-term contender in the U.S. market. The current pullback may present a buying opportunity for investors bullish on AI's disruptive potential in credit assessment.