Shares of Upstart (UPST), the AI-powered lending platform, are feeling the heat. The stock has plunged about 54% from its 52-week high of $96.43. However, the pain isn’t over yet. UPST stock is down another 11% in morning trading Wednesday after it reported first-quarter financials on May 6.
Despite this recent slide, Upstart stock is still up about 83% over the past year. Much of that rally was driven by favorable macroeconomic tailwinds. Notably, three consecutive interest rate cuts by the Federal Reserve boosted lending platforms like Upstart, improving loan originations and conversion rates while reducing borrowing costs for consumers. The environment was ripe for growth, and Upstart capitalized on it.
