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Upstart Stock Soars as AI Lending Platform Beats Expectations
Investors are buzzing as Upstart (NASDAQ: UPST) stock surges due to impressive second-quarter results from the cloud-based artificial intelligence (AI) lending platform.
Upstart reported adjusted earnings per share of -17 cents in Q2 2024, surpassing Wall Street’s expectations of -39 cents. Although lower than the 6 cents reported last year, the company also exceeded revenue estimates with $127.63 million in revenue, down 6% from Q2 2023.
CEO Dave Girouard attributes the success to advances in the AI model, improved funding, and increased operating efficiency.
Outlook Lifts UPST Stock
Upstart anticipates Q3 revenue of approximately $150 million, above analysts’ estimates. The positive news has led to heavy trading of UPST shares, with 13 million units exchanged, well above the daily average volume.
UPST stock has surged 38.5% as of Wednesday morning.
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Analysis:
Upstart’s impressive performance in Q2 has driven its stock price up significantly, indicating strong investor confidence in the company’s growth potential. The beat on earnings and revenue, along with a promising outlook for Q3, positions Upstart as a promising investment opportunity in the AI lending sector. Investors should continue to monitor Upstart’s progress and market trends to capitalize on potential gains in the future.