Upstart’s Business Explodes 154% Year Over Year—So Why Is the Stock Tanking?

Upstart just posted monster growth—revenue surging 154% year-over-year—yet its stock keeps getting hammered. What gives?

Market Mismatch

Wall Street expected even more. Analysts wanted perfection—not just explosive growth. When you beat estimates but miss fantasy projections, the algos dump first and ask questions later.

Macro Jitters

Rising rates spook lenders. Upstart’s AI-driven loan platform thrives when credit flows easy. Tighten the taps, and suddenly those sleek algorithms face headwinds even machine learning can’t bypass.

Profit Paradox

Growth ain’t cheap. Customer acquisition costs soared—no surprise when every fintech firm fights for the same eyeballs. Revenue climbs, but margins get squeezed. Typical finance move: punish today for not being tomorrow.

Short-Term Myopia

Traders chase momentum, not fundamentals. A 154% jump gets dismissed as ‘priced in’ while they pivot to the next shiny object. Never mind the long-term disruption—this quarter’s guidance slightly underwhelmed? Cue the sell-off.

So the stock drops. Because in a market obsessed with quarterly theater, even blistering growth can play second fiddle to narrative flaws. Maybe that’s why they call it ‘stock story’ and not ‘stock reality.’