Upstart (UPST) Stocks are down today – Here’s Why?

Shares of the artificial intelligence lender Upstart ( UPST -7.34% ) traded roughly 6% lower as of 2:41 p.m. ET today as broader markets struggled and after the company released its annual report over the weekend. Most tech stocks struggled in the wake of rising tensions between Russia and Ukraine. Upstart released some key information on its business over the weekend.

Upstart also released its annual 10-K report over the weekend, which provided some interesting details on the business after the company just reported strong earnings results for the fourth quarter of 2021.

Stocks for Upstart Holdings Inc. 

Notably, Upstart said that only 16% of the unsecured personal loans originated through its platform were retained by bank partners in 2021. A big part of the company’s model is for banks and credit unions to fund loans through their platform with cheap deposits and retain those loans on their balance sheets.

The 16% number is down from 21% in 2020. However, the total loan-origination volume was way higher in 2021 than in 2020, so the total volume of retained loans by banks was also much higher in 2021. The flip side to that argument is that Upstart greatly expanded the number of bank partners it is working with within 2021.

Written by Maryam Nawaz

MPhil International Relations (Specialization in International Politics and Economy)

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