So I'm looking at the UPST chart, and wow, is it down a lot. The primary reason seems to be due to the poor expectations they have on the next quarter earnings, due to the conversion of loans to cash on their balance sheets.
They expect losses of ~30 million, the first negative quarter since IPOing. They have also been unable to change their algorithm due to a denial from the Consumer Financial Protection Bureau. With this in mind, the stock is down over 90% from it's highs, and while this is a major roadbump, surely most of the damage is priced in at this stage, right?
I like the idea of a loan algorithm which takes into account employment and other factors which are not used with other loans offered, but what are your opinions on the stock? I could very well be missing some major roadbumps and I don't want to dive into a stock down 90% if it can go down another 90.
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