Is UPST stock price looking for a resistance level of $30?
Upstart Holdings (UPST) stock is among the troubled stocks given the vulnerable financial and economic situation around the world. Since the AI-powered consumer lending company went public in 2020, recent UPST stock price has remained at its lowest. Even lower than the prices at the time of the initial price offering (IPO).
The Upcoming Journey of UPST
Yet, for nearly a week now, UPST stock price has been on the rise. This is in view of the publication of the results of the credit reporting platform on November 8. At press time, UPST stock is trading at $21.64 with a rise of more than 5% in one day.
After his results, stock prices are constantly rising and buyers are following the “buying down”. However, the uptrend pauses just below the 50-day moving average and if the buyers push the asset price above this resistance zone, the rally price trend may end its journey to the level of $30.
source – TradingView
Market conditions emerged from bearish trends that brought several top stocks to deep discounted prices. Upstart Holdings stock falls into one of these categories, but analysts have different views on the same thing. Big company analysts widely suggest “selling” stocks.
At its peak, the stock price traded over $400, but it has fallen and is currently trading after a 95% drop.
The initial phase did not last long for Upstart
Upstart Holdings has an important goal of improving the economics of the lending industry. The company believes that given the shortcomings of traditional risk models, the lending ecosystem has taken many people out of it.
The lending company makes loans to its consumers and assesses the risk based on its own risk-based model. The in-house developed model considers around 1,500 data points and runs them using its artificial intelligence (AI) program. Being an AI-enabled platform works in its favor as it accurately assesses the risk of default and fraud.
Despite the continued performance and strong results of recent times, the company faces headwinds this year for several reasons.
The main reason remains the increase in interest rates by the Federal Reserve. In the recent earnings release, the company’s management presented a weak outlook for the next quarter. Moreover, the short-term outlook does not look attractive either.
Given the current situation and potential future outlook, analysts suggest against rushing to buy UPST shares. Taking the benefit of the doubt, it would be best to watch the stock as the possibility of an improving economy could bode well for the stock price.
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