UPST Stock Forecast: Upstart all set to announce earnings, Overall outlook is Negative

In the previous trading session, UPST closed at $89.04, lower by 4.84%. Currently, it is trading lower by nearly 0.82% in the pre-market.

UPST Stock Forecast: Performance Chart

Read: AMC Stock Forecast

UPST Stock Forecast: Momentum Summary

Also Read: SoFi Stock Forecast

UPST Stock Forecast: UPST Technical Analysis

UPST Stock Forecast: CrowdWisdom360-Insights

• Last week, Upstart launched a mobile app for its vehicle loan segment, but macroeconomic factors such as high gasoline prices and rising interest rates are having a more immediate impact on the stock price.
• After a particularly challenging six months, Upstart and other fintech were outperforming the wider IT sector. In that time, Upstart has lost roughly 62 percent of its value. Despite the fact that it appears to be recovering from an up-and-down week with plenty of volatility.
• Also, The higher interest rates could affect Upstart by increasing delinquency and default rates, as well as increasing funding expenses.
• The good news for Upstart investors is that the company makes 94 percent of its revenue by collecting fees from lenders, which means the company isn’t risking the loans.
• Upstart is still in the early phases of its AI loan origination business, and it is only now beginning to tap into the vast car lending and personal loan markets. considering the recent volatility and the stock price.
• UPST has recently joined hands with Firstmark Credit Union based in Texas to provide personal loans through Upstart’s platform. This may be a good news for Upstart as it can possibly lead to more members availing their services.
• Upstart will be releasing their Q1 2022 Earnings on May 9, 2022 after the market close. They will be holding a live webcast and conference call at 1:30 PM PT/ 4:30 PM ET. Zacks investment have forecast an EPS of $0.52.
• Analysts believe The stock has a good possibility of performing well in the short term, yet the recommendation is to sell this stock.

UPST Stock Forecast: Why UPST stock is down today?

Upstart Holdings shares were absolutely thrashed by investors on Tuesday 10.5.2022. The stock closed 56.42% lower and was down by about 60% at one point of time. This significant fall is in the backdrop of company reporting Q1 FY2022-23 results on Tuesday and the results were good and did beat the market expectations by any measure. It reported first quarter revenue of $310 million, up by 156% YoY and adjusted EPS came at $0.61. The analysts were expecting revenue of $324.5 million and adjusted EPS of $0.51. It was a robust quarter by any mean. So why did UPST stock crashed?

The real reason is the lower guidance for the second quarter and complete financial year 2022-23. The revenue forecast for second quarter is only $300 at the midpoint and for the complete financial year, it is $1.25 billion. The earlier estimates for complete financial year were $1.4 billion. While, the figure of $300 for a quarter and $1.4 billion is not bad, but what it signifies is that time for triple-digit growth for Upstart Holdings Inc is over. While, we can say that Wall Street has been harsh with Upstart Holdings, it somewhat sums up the fear is imbibed in the market.

Management believes that due to increased interest rates by Fed and uncertainties looming over the economy, a lot of pessimism is created in the market. CEO David Girouard believes that he is no longer expecting the same loan transaction volume, he expected a few months before. Also, it should be noted that Upstart Holdings originates lot of unsecured personal and auto loans and in phases of recession, they are the first to falter. So, the market optimism about Upstart Holdings is over and it is being punished brutally and the fall was very swift.

Latest UPST Technical Video

UPST Stock Forecast: Latest News and Tweets

UPST Stock forecast: Social Media Sentiment ($UPST)

UPST Stock Forecast: UPST Price Targets for Next 12 months

UPST has price targets with a high forecast of $350 and low forecast of $110. At the current price of $151.82, the average price forecast reflects a 40.52 percent increase. Analysts recommend to buy this stock and this rating has been unchanged since a month.

UPST Stock Forecast: Is UPST Overvalued?

The stock of UPST has remained unchanged over the last year, rising only 2.3%. Upst recently launched a $400 million share repurchase program, which appears to be interesting given that the business went public in 2020 with $986 million in cash and another $200 million in restricted capital. The most recent Q4 results are also impressive, with revenue of $304 million, a 251% increase year over year that beats the estimates by 42 million dollars. upst also announced Q1 guidance of between 295 and 305 million dollars in revenue. So, if they beat this forecast, the quarterly run rate will be in the $300 million range. That brings the company’s revenue to a billion dollars and its valuation to 8.5 billion dollars, and it also has some shade over a billion dollars in cash. This gives a decent valuation to the company. Upst is currently profitable from an operating perspective, profitable from a net income perspective, and growing revenue at a fast pace, so the 8.5 billion dollar valuation is starting to make a lot more sense.

UPST Stock Forecast: UPST Q4 Earnings Summary

Upstart reported Fourth Quarter earnings on February 15,2022. Upstart’s rapid growth in sales improved the profitability metrics of the company. Upstart surpassed the analyst estimations for Q4 in a record rate. The top-line growth is looking solid with improvement in Artificial intelligence models. The outlook for 2022 is looking impressive and the company is looking forward to expanding in other types of lending models.

The year 2021 has been an exceptional year for Upstart. with a 252% YoY change the revenue grew to $305 million fron $86.7. Upstart reported Fourth-quarter EPS of 61 cents which beats the analyst’s estimations of 18 cents. Revenue from fees was $287 million which is much higher than the $84.4 million of year-ago quarter revenue. General and administrative expenses increased YoY to $46.49 million from $14.83 million. Sales and marketing expenses also surge $2.3 million from the year-ago quarter. In this Fourth quarter, Upstart has been successfully generated loans of 4,50,000 worth $4.1 billion which is comparatively very high than the year-ago quarter loans of 1,23,396.

Writer: Rakesh Atla

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.