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3 Things You Need to Know If You Buy Upstart Stock Today


Published on 2024-12-15 07:41:16 - The Motley Fool
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  • Upstart makes its money by providing its software to third-party lenders, of which it has more than 100 partners today, earning fees in the process. The goal here is for the business to not be a pure-play lender, as this would resemble a traditional bank and not the technology and software enterprise that Upstart strives to be.

The article from The Motley Fool discusses three key considerations for potential investors in Upstart Holdings, Inc. as of December 15, 2024. Firstly, Upstart's AI-driven lending platform has shown significant growth, with a 30% increase in loan originations year-over-year, indicating strong market demand for its technology. Secondly, despite this growth, the company faces challenges with profitability due to high operational costs and the need for substantial reinvestment in technology and marketing. Lastly, the article highlights the competitive landscape, noting that while Upstart has carved out a niche, it must continuously innovate to stay ahead of traditional financial institutions and other fintech competitors entering the AI lending space. The piece suggests that while Upstart presents an intriguing investment opportunity due to its innovative approach, investors should be cautious of its current financial health and the competitive pressures it faces.

Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2024/12/15/3-things-need-to-know-buy-upstart-stock-today/?referring_guid=29a8185b-4b88-46c0-a210-f9bda0a93b4f ]

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