What Happened?
Shares of AI lending platform Upstart (NASDAQ: UPST) fell in the afternoon session after the major indices pulled back, as market remained volatile amid growing uncertainty about US-China trade policies.
Also, the company, announced a new partnership with Corporate America Family Credit Union (CAFCU). The collaboration allowed CAFCU, a member-owned financial cooperative, to offer personal loans, home equity lines of credit (HELOCs), and auto refinance loans to more consumers. CAFCU had already started lending as a partner on the Upstart Referral Network for personal loans in the previous month. The credit union also planned to expand into HELOCs and auto refinance loans. The partnership provided CAFCU members with a modern online process, aiming to make borrowing easier and more accessible.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Upstart? Access our full analysis report here.
What Is The Market Telling Us
Upstart’s shares are extremely volatile and have had 71 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 2.8% on the news that President Donald Trump eased concerns over escalating trade tensions with China, calming markets rattled by his earlier tariff threats. U.S. stocks rose sharply, with Nasdaq-100 futures jumping nearly 2%, following a post on Truth Social where Trump suggested the trade conflict would not worsen. This shift in tone provided significant relief to investors, who had driven a sharp sell-off the previous Friday due to fears of higher tariffs. Technology companies with significant international supply chains and sales, such as AMD and Nvidia, led the market rally, with their shares climbing 4.2% and 3.4%, respectively. The broader market indexes, including the S&P 500 and the Dow Jones Industrial Average, also saw substantial gains, reflecting widespread optimism that a potentially damaging trade war might be averted.
Upstart is down 17.1% since the beginning of the year, and at $50.42 per share, it is trading 43.2% below its 52-week high of $88.77 from February 2025. Investors who bought $1,000 worth of Upstart’s shares at the IPO in December 2020 would now be looking at an investment worth $1,711.
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