If You’d Dropped $1,000 on Upstart (UPST) 3 Years Ago, Here’s the Brutal—or Beautiful—Truth
AI lending darling Upstart promised to disrupt finance. Did it deliver—or leave investors holding the bag?
Let’s cut through the hype.
The Numbers Don’t Lie
Three years ago, you could’ve grabbed UPST shares for a song. Today? Let’s just say the ride wasn’t for the faint-hearted.
Volatility City
This stock didn’t just climb—it mooned, crashed, and burned like a meme coin on leverage. Perfect for traders, terrifying for ‘HODL’ types.
The Bigger Picture
While Wall Street hedgies played hot potato with UPST, crypto quietly did what it does best—printing generational wealth without permission slips from banks.
Final Thought: Maybe the real disruption was the friends we lost chasing fintech IPOs.
Image source: Getty Images.
Taking investors on a wild ride
Upstart has made for a wildly successful investment in the past three years. Since July 31, 2022, the stock has skyrocketed 250%. This monster gain would've turned a $1,000 investment into $3,500 today. Any investor WOULD be pleased with this result.
Despite such an impressive rise, the stock currently trades 78% below its peak. That record was established in October 2021, when Upstart was putting up tremendous growth.
To be clear, the company isn't firing on all cylinders like it was in 2021. However, the financial results have shown meaningful improvements, which explains the stock's performance in the past three years.
During the first quarter of 2025 (ended March 31), Upstart's transaction volume jumped 102% year over year, supporting a notable revenue gain of 67%. And the leadership team expects the business to be GAAP profitable for the full year.
High expectations
Upstart shares don't look cheap. They currently trade at a price-to-sales ratio of 10.9, highlighting the market's growing Optimism toward the business. A valid argument can be made that this valuation adds significant downside risk should the company disappoint Wall Street when it reports earnings.
As a younger business that has yet to generate consistent profits, Upstart remains a risky investment, in my opinion.
