#1 - Upstart (NASDAQ:UPST)
The first stock on this list is Upstart Holdings Inc. (NASDAQ: UPST), which has a whopping 36.9% of its shares being sold short. The company is part of the fintech sector and sparked investor interest for its use of artificial intelligence (AI) in its lending decisions. This allows the company to approve applicants for their "future credit score" based on variables such as the school they received their degree from and career prospects in addition to traditional variables.
Not surprisingly, UPST stock shot higher in 2023 as part of the AI revolution and is up 55% in the last 12 months. However, the company's revenue and earnings have been falling year-over-year, and earnings have turned negative for the last four quarters as the company is finding it more difficult to qualify lenders even using its AI model. They're also finding that fewer consumers are looking to take out a personal loan.
Short sellers could be wrong if the Federal Reserve lowers interest rates. But even if they do, there will likely be a lag effect before that shows up on Upstart's bottom line.
About Upstart
Upstart Holdings, Inc, together with its subsidiaries, operates a cloud-based artificial intelligence (AI) lending platform in the United States. Its platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small dollar loans that connects consumer demand for loans to its to bank and credit unions.
Read More - Current Price
- $68.40
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 4 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $61.80 (9.6% Downside)
