I've been investing in Upstart for quite some time, and recently bought some call options on this stock for the upcoming earnings which always seem to crush. The company seems to be on a great growth trajectory and is checking all the boxes one would want them to. What I have noticed is that the short interest on this stock is tremendously high. I just noticed that now it seems to be sitting at 26% of float! I'm interesting in hearing your opinions as to why on earth this is happening. This stock went on way too much of a tear last year; that's a given. But it trades at a forward P/E in the 20s at this point and is still firing on all cylinders with huge room to grow. Why on earth would there be so much interest in shorting this stock even at this price point? I am at a loss. Unless someone actually knows that their whole AI system is fundamentally broken, I cannot for the life of me understand it.
Leave a Reply