Shares of AI fintech firm Upstart Holdings (NASDAQ:UPST) experienced a sharp decline of 23% to $22.61 in premarket trading today, following the release of their Q3 report late Tuesday. The San Mateo-based company reported a Q3 loss of $40.3 million, an improvement over the previous year's loss of $56.2 million.
Despite the reduced loss, Upstart's revenue saw a 14% drop to $134.6 million. After adjusting for specific items, the loss was 5 cents per share. The company's fourth-quarter revenue forecast predicts a steady performance with an anticipated revenue of $135 million.
However, Upstart is bracing for an expected Q4 loss of approximately $48 million. In response to these results and forecasts, brokerage firm Piper Sandler has revised their price target on Upstart's shares, signaling a cautious outlook for the AI fintech company.
InvestingPro Insights
In line with the recent performance of Upstart Holdings, InvestingPro data and tips provide some valuable context. The company has a market cap of $2470M and a negative P/E ratio of -9.05, indicating that it is not currently profitable. This aligns with the InvestingPro tip that analysts do not anticipate the company will be profitable this year.
Furthermore, Upstart's revenue has been declining at an accelerating rate, which is reflected in a -47.77% revenue growth over the last twelve months as of Q2 2023. This corresponds with the InvestingPro tip that analysts anticipate a sales decline in the current year.
Despite these challenges, Upstart has demonstrated significant return over the last week with a 19.15% increase, and a high return over the last year with a 53.89% increase. This is in line with the InvestingPro tip that the stock price movements are quite volatile.
These insights are just a glimpse of the comprehensive analysis provided by InvestingPro. For a deeper understanding and more tips, consider exploring InvestingPro's product offerings.
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