Upstart Stock Plummets Despite Strong Earnings Report

Upstart Holdings (UPST) shares tumbled 18.2% Wednesday afternoon despite reporting better-than-expected Q2 results. The AI-driven lending platform posted $0.15 EPS on $257 million revenue, crushing analyst estimates of a $0.10 loss on $225.4 million sales. Loan originations surged 159% YoY to 372,600.

Management raised full-year guidance but cautioned about inflationary risks, triggering a sell-off that defied the broader market's gains. The S&P 500 and Nasdaq ROSE 0.7% and 1.1% respectively during the same trading session.

The disconnect between fundamentals and market reaction highlights investor sensitivity to macroeconomic headwinds in fintech. Upstart's AI-powered lending model faces its first true stress test amid rising interest rates and economic uncertainty.